Correlation Between Dennys Corp and Alsea SAB
Can any of the company-specific risk be diversified away by investing in both Dennys Corp and Alsea SAB 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 Dennys Corp and Alsea SAB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dennys Corp and Alsea SAB de, you can compare the effects of market volatilities on Dennys Corp and Alsea SAB 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 Dennys Corp with a short position of Alsea SAB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dennys Corp and Alsea SAB.
Diversification Opportunities for Dennys Corp and Alsea SAB
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Dennys and Alsea is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Dennys Corp and Alsea SAB de in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alsea SAB de and Dennys Corp 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 Dennys Corp are associated (or correlated) with Alsea SAB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alsea SAB de has no effect on the direction of Dennys Corp i.e., Dennys Corp and Alsea SAB go up and down completely randomly.
Pair Corralation between Dennys Corp and Alsea SAB
Given the investment horizon of 90 days Dennys Corp is expected to generate 0.84 times more return on investment than Alsea SAB. However, Dennys Corp is 1.18 times less risky than Alsea SAB. It trades about -0.04 of its potential returns per unit of risk. Alsea SAB de is currently generating about -0.12 per unit of risk. If you would invest 661.00 in Dennys Corp on August 30, 2024 and sell it today you would lose (25.00) from holding Dennys Corp or give up 3.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dennys Corp vs. Alsea SAB de
Performance |
| Timeline |
| Dennys Corp |
| Alsea SAB de |
Dennys Corp and Alsea SAB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dennys Corp and Alsea SAB
The main advantage of trading using opposite Dennys Corp and Alsea SAB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dennys Corp position performs unexpectedly, Alsea SAB 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 Alsea SAB will offset losses from the drop in Alsea SAB's long position.| Dennys Corp vs. Chipotle Mexican Grill | Dennys Corp vs. Yum Brands | Dennys Corp vs. The Wendys Co | Dennys Corp vs. McDonalds |
| Alsea SAB vs. Marstons PLC | Alsea SAB vs. Bagger Daves Burger | Alsea SAB vs. Flanigans Enterprises | Alsea SAB vs. Ark Restaurants Corp |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Stocks Directory Find actively traded stocks across global markets |