Correlation Between Dennys Corp and Southwestern
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By analyzing existing cross correlation between Dennys Corp and Southwestern Energy 495, you can compare the effects of market volatilities on Dennys Corp and Southwestern 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 Southwestern. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dennys Corp and Southwestern.
Diversification Opportunities for Dennys Corp and Southwestern
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Dennys and Southwestern is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Dennys Corp and Southwestern Energy 495 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Southwestern Energy 495 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 Southwestern. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Southwestern Energy 495 has no effect on the direction of Dennys Corp i.e., Dennys Corp and Southwestern go up and down completely randomly.
Pair Corralation between Dennys Corp and Southwestern
Given the investment horizon of 90 days Dennys Corp is expected to generate 4.75 times more return on investment than Southwestern. However, Dennys Corp is 4.75 times more volatile than Southwestern Energy 495. It trades about 0.07 of its potential returns per unit of risk. Southwestern Energy 495 is currently generating about -0.14 per unit of risk. If you would invest 577.00 in Dennys Corp on October 23, 2024 and sell it today you would earn a total of 16.00 from holding Dennys Corp or generate 2.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 88.89% |
| Values | Daily Returns |
Dennys Corp vs. Southwestern Energy 495
Performance |
| Timeline |
| Dennys Corp |
| Southwestern Energy 495 |
Dennys Corp and Southwestern Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dennys Corp and Southwestern
The main advantage of trading using opposite Dennys Corp and Southwestern positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dennys Corp position performs unexpectedly, Southwestern 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 Southwestern will offset losses from the drop in Southwestern's long position.| Dennys Corp vs. Brinker International | Dennys Corp vs. Bloomin Brands | Dennys Corp vs. Jack In The | Dennys Corp vs. BJs Restaurants |
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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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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