Correlation Between Dennys Corp and US Global
Can any of the company-specific risk be diversified away by investing in both Dennys Corp and US Global 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 US Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dennys Corp and US Global Investors, you can compare the effects of market volatilities on Dennys Corp and US Global 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 US Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dennys Corp and US Global.
Diversification Opportunities for Dennys Corp and US Global
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Dennys and GROW is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Dennys Corp and US Global Investors in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on US Global Investors 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 US Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of US Global Investors has no effect on the direction of Dennys Corp i.e., Dennys Corp and US Global go up and down completely randomly.
Pair Corralation between Dennys Corp and US Global
Given the investment horizon of 90 days Dennys Corp is expected to under-perform the US Global. In addition to that, Dennys Corp is 1.72 times more volatile than US Global Investors. It trades about -0.04 of its total potential returns per unit of risk. US Global Investors is currently generating about -0.01 per unit of volatility. If you would invest 267.00 in US Global Investors on August 31, 2024 and sell it today you would lose (23.00) from holding US Global Investors or give up 8.61% 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. US Global Investors
Performance |
| Timeline |
| Dennys Corp |
| US Global Investors |
Dennys Corp and US Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dennys Corp and US Global
The main advantage of trading using opposite Dennys Corp and US Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dennys Corp position performs unexpectedly, US Global 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 US Global will offset losses from the drop in US Global's long position.| Dennys Corp vs. Brinker International | Dennys Corp vs. Bloomin Brands | Dennys Corp vs. Jack In The | Dennys Corp vs. BJs Restaurants |
| US Global vs. Gladstone Investment | US Global vs. PennantPark Floating Rate | US Global vs. Horizon Technology Finance | US Global vs. Stellus Capital Investment |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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