Correlation Between Dine Brands and Grupo Aeroportuario
Can any of the company-specific risk be diversified away by investing in both Dine Brands and Grupo Aeroportuario 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 Dine Brands and Grupo Aeroportuario into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dine Brands Global and Grupo Aeroportuario del, you can compare the effects of market volatilities on Dine Brands and Grupo Aeroportuario 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 Dine Brands with a short position of Grupo Aeroportuario. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dine Brands and Grupo Aeroportuario.
Diversification Opportunities for Dine Brands and Grupo Aeroportuario
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Dine and Grupo is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Dine Brands Global and Grupo Aeroportuario del in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grupo Aeroportuario del and Dine Brands 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 Dine Brands Global are associated (or correlated) with Grupo Aeroportuario. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grupo Aeroportuario del has no effect on the direction of Dine Brands i.e., Dine Brands and Grupo Aeroportuario go up and down completely randomly.
Pair Corralation between Dine Brands and Grupo Aeroportuario
Considering the 90-day investment horizon Dine Brands Global is expected to generate 1.62 times more return on investment than Grupo Aeroportuario. However, Dine Brands is 1.62 times more volatile than Grupo Aeroportuario del. It trades about -0.03 of its potential returns per unit of risk. Grupo Aeroportuario del is currently generating about -0.08 per unit of risk. If you would invest 4,317 in Dine Brands Global on September 3, 2024 and sell it today you would lose (725.00) from holding Dine Brands Global or give up 16.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dine Brands Global vs. Grupo Aeroportuario del
Performance |
| Timeline |
| Dine Brands Global |
| Grupo Aeroportuario del |
Dine Brands and Grupo Aeroportuario Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dine Brands and Grupo Aeroportuario
The main advantage of trading using opposite Dine Brands and Grupo Aeroportuario positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dine Brands position performs unexpectedly, Grupo Aeroportuario 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 Grupo Aeroportuario will offset losses from the drop in Grupo Aeroportuario's long position.| Dine Brands vs. Bloomin Brands | Dine Brands vs. BJs Restaurants | Dine Brands vs. The Cheesecake Factory | Dine Brands vs. Brinker International |
| Grupo Aeroportuario vs. Grupo Aeroportuario del | Grupo Aeroportuario vs. Corporacion America Airports | Grupo Aeroportuario vs. AerSale Corp | Grupo Aeroportuario vs. Flughafen Zrich AG |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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