Correlation Between Canlan Ice and Dine Brands
Can any of the company-specific risk be diversified away by investing in both Canlan Ice and Dine Brands at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Canlan Ice and Dine Brands into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Canlan Ice Sports and Dine Brands Global, you can compare the effects of market volatilities on Canlan Ice and Dine Brands and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Canlan Ice with a short position of Dine Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canlan Ice and Dine Brands.
Diversification Opportunities for Canlan Ice and Dine Brands
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Canlan and Dine is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Canlan Ice Sports and Dine Brands Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dine Brands Global and Canlan Ice is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Canlan Ice Sports are associated (or correlated) with Dine Brands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dine Brands Global has no effect on the direction of Canlan Ice i.e., Canlan Ice and Dine Brands go up and down completely randomly.
Pair Corralation between Canlan Ice and Dine Brands
If you would invest 3,034 in Dine Brands Global on November 4, 2024 and sell it today you would earn a total of 4.00 from holding Dine Brands Global or generate 0.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Canlan Ice Sports vs. Dine Brands Global
Performance |
| Timeline |
| Canlan Ice Sports |
| Dine Brands Global |
Canlan Ice and Dine Brands Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canlan Ice and Dine Brands
The main advantage of trading using opposite Canlan Ice and Dine Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canlan Ice position performs unexpectedly, Dine Brands can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Dine Brands will offset losses from the drop in Dine Brands' long position.| Canlan Ice vs. American Airlines Group | Canlan Ice vs. Old Republic International | Canlan Ice vs. China Southern Airlines | Canlan Ice vs. flyExclusive, |
| Dine Brands vs. Bloomin Brands | Dine Brands vs. BJs Restaurants | Dine Brands vs. The Cheesecake Factory | Dine Brands vs. Brinker International |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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