Correlation Between Dennys Corp and SNDL
Can any of the company-specific risk be diversified away by investing in both Dennys Corp and SNDL 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 SNDL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dennys Corp and SNDL Inc, you can compare the effects of market volatilities on Dennys Corp and SNDL 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 SNDL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dennys Corp and SNDL.
Diversification Opportunities for Dennys Corp and SNDL
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Dennys and SNDL is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Dennys Corp and SNDL Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SNDL Inc 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 SNDL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SNDL Inc has no effect on the direction of Dennys Corp i.e., Dennys Corp and SNDL go up and down completely randomly.
Pair Corralation between Dennys Corp and SNDL
Given the investment horizon of 90 days Dennys Corp is expected to generate 0.79 times more return on investment than SNDL. However, Dennys Corp is 1.26 times less risky than SNDL. It trades about 0.0 of its potential returns per unit of risk. SNDL Inc is currently generating about -0.1 per unit of risk. If you would invest 657.00 in Dennys Corp on September 4, 2024 and sell it today you would lose (5.00) from holding Dennys Corp or give up 0.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dennys Corp vs. SNDL Inc
Performance |
| Timeline |
| Dennys Corp |
| SNDL Inc |
Dennys Corp and SNDL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dennys Corp and SNDL
The main advantage of trading using opposite Dennys Corp and SNDL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dennys Corp position performs unexpectedly, SNDL 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 SNDL will offset losses from the drop in SNDL's long position.| Dennys Corp vs. Brinker International | Dennys Corp vs. Bloomin Brands | Dennys Corp vs. Jack In The | Dennys Corp vs. BJs Restaurants |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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