Correlation Between Dennys Corp and Fiesta Restaurant
Can any of the company-specific risk be diversified away by investing in both Dennys Corp and Fiesta Restaurant 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 Fiesta Restaurant into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dennys Corp and Fiesta Restaurant Group, you can compare the effects of market volatilities on Dennys Corp and Fiesta Restaurant 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 Fiesta Restaurant. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dennys Corp and Fiesta Restaurant.
Diversification Opportunities for Dennys Corp and Fiesta Restaurant
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Dennys and Fiesta is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Dennys Corp and Fiesta Restaurant Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fiesta Restaurant 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 Fiesta Restaurant. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fiesta Restaurant has no effect on the direction of Dennys Corp i.e., Dennys Corp and Fiesta Restaurant go up and down completely randomly.
Pair Corralation between Dennys Corp and Fiesta Restaurant
If you would invest 806.00 in Fiesta Restaurant Group on August 24, 2024 and sell it today you would earn a total of 0.00 from holding Fiesta Restaurant Group or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 0.79% |
| Values | Daily Returns |
Dennys Corp vs. Fiesta Restaurant Group
Performance |
| Timeline |
| Dennys Corp |
| Fiesta Restaurant |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Dennys Corp and Fiesta Restaurant Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dennys Corp and Fiesta Restaurant
The main advantage of trading using opposite Dennys Corp and Fiesta Restaurant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dennys Corp position performs unexpectedly, Fiesta Restaurant 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 Fiesta Restaurant will offset losses from the drop in Fiesta Restaurant's long position.| Dennys Corp vs. Brinker International | Dennys Corp vs. Bloomin Brands | Dennys Corp vs. Jack In The | Dennys Corp vs. BJs Restaurants |
| Fiesta Restaurant vs. BJs Restaurants | Fiesta Restaurant vs. Dine Brands Global | Fiesta Restaurant vs. Brinker International | Fiesta Restaurant vs. FAT Brands |
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 Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |