Correlation Between Dine Brands and First Republic
Can any of the company-specific risk be diversified away by investing in both Dine Brands and First Republic 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 First Republic 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 First Republic Bank, you can compare the effects of market volatilities on Dine Brands and First Republic 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 First Republic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dine Brands and First Republic.
Diversification Opportunities for Dine Brands and First Republic
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Dine and First is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Dine Brands Global and First Republic Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Republic Bank 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 First Republic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Republic Bank has no effect on the direction of Dine Brands i.e., Dine Brands and First Republic go up and down completely randomly.
Pair Corralation between Dine Brands and First Republic
If you would invest 3,727 in Dine Brands Global on September 3, 2024 and sell it today you would lose (135.00) from holding Dine Brands Global or give up 3.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.8% |
| Values | Daily Returns |
Dine Brands Global vs. First Republic Bank
Performance |
| Timeline |
| Dine Brands Global |
| First Republic Bank |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Dine Brands and First Republic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dine Brands and First Republic
The main advantage of trading using opposite Dine Brands and First Republic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dine Brands position performs unexpectedly, First Republic 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 First Republic will offset losses from the drop in First Republic's long position.| Dine Brands vs. Bloomin Brands | Dine Brands vs. BJs Restaurants | Dine Brands vs. The Cheesecake Factory | Dine Brands vs. Brinker International |
| First Republic vs. Western Digital | First Republic vs. Dine Brands Global | First Republic vs. FARO Technologies | First Republic vs. Allient |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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