Correlation Between Dennys Corp and Doubledown Interactive
Can any of the company-specific risk be diversified away by investing in both Dennys Corp and Doubledown Interactive 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 Doubledown Interactive into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dennys Corp and Doubledown Interactive Co, you can compare the effects of market volatilities on Dennys Corp and Doubledown Interactive 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 Doubledown Interactive. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dennys Corp and Doubledown Interactive.
Diversification Opportunities for Dennys Corp and Doubledown Interactive
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Dennys and Doubledown is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Dennys Corp and Doubledown Interactive Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Doubledown Interactive 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 Doubledown Interactive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Doubledown Interactive has no effect on the direction of Dennys Corp i.e., Dennys Corp and Doubledown Interactive go up and down completely randomly.
Pair Corralation between Dennys Corp and Doubledown Interactive
Given the investment horizon of 90 days Dennys Corp is expected to under-perform the Doubledown Interactive. But the stock apears to be less risky and, when comparing its historical volatility, Dennys Corp is 1.48 times less risky than Doubledown Interactive. The stock trades about -0.02 of its potential returns per unit of risk. The Doubledown Interactive Co is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 951.00 in Doubledown Interactive Co on September 3, 2024 and sell it today you would earn a total of 449.00 from holding Doubledown Interactive Co or generate 47.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dennys Corp vs. Doubledown Interactive Co
Performance |
| Timeline |
| Dennys Corp |
| Doubledown Interactive |
Dennys Corp and Doubledown Interactive Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dennys Corp and Doubledown Interactive
The main advantage of trading using opposite Dennys Corp and Doubledown Interactive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dennys Corp position performs unexpectedly, Doubledown Interactive 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 Doubledown Interactive will offset losses from the drop in Doubledown Interactive's long position.| Dennys Corp vs. Brinker International | Dennys Corp vs. Bloomin Brands | Dennys Corp vs. Jack In The | Dennys Corp vs. BJs Restaurants |
| Doubledown Interactive vs. Playstudios | Doubledown Interactive vs. Talkspace | Doubledown Interactive vs. Katapult Holdings Equity | Doubledown Interactive vs. HUMANA INC |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |