Correlation Between Dennys Corp and PATTERSON
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By analyzing existing cross correlation between Dennys Corp and PATTERSON UTI ENERGY INC, you can compare the effects of market volatilities on Dennys Corp and PATTERSON 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 PATTERSON. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dennys Corp and PATTERSON.
Diversification Opportunities for Dennys Corp and PATTERSON
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Dennys and PATTERSON is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Dennys Corp and PATTERSON UTI ENERGY INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PATTERSON UTI ENERGY 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 PATTERSON. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PATTERSON UTI ENERGY has no effect on the direction of Dennys Corp i.e., Dennys Corp and PATTERSON go up and down completely randomly.
Pair Corralation between Dennys Corp and PATTERSON
Given the investment horizon of 90 days Dennys Corp is expected to under-perform the PATTERSON. In addition to that, Dennys Corp is 3.44 times more volatile than PATTERSON UTI ENERGY INC. It trades about -0.02 of its total potential returns per unit of risk. PATTERSON UTI ENERGY INC is currently generating about -0.01 per unit of volatility. If you would invest 9,121 in PATTERSON UTI ENERGY INC on September 4, 2024 and sell it today you would lose (329.00) from holding PATTERSON UTI ENERGY INC or give up 3.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.79% |
| Values | Daily Returns |
Dennys Corp vs. PATTERSON UTI ENERGY INC
Performance |
| Timeline |
| Dennys Corp |
| PATTERSON UTI ENERGY |
Dennys Corp and PATTERSON Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dennys Corp and PATTERSON
The main advantage of trading using opposite Dennys Corp and PATTERSON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dennys Corp position performs unexpectedly, PATTERSON 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 PATTERSON will offset losses from the drop in PATTERSON's long position.| Dennys Corp vs. Brinker International | Dennys Corp vs. Bloomin Brands | Dennys Corp vs. Jack In The | Dennys Corp vs. BJs Restaurants |
| PATTERSON vs. The Travelers Companies | PATTERSON vs. GE Aerospace | PATTERSON vs. Walmart | PATTERSON vs. Pfizer 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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