Correlation Between Dine Brands and Playtika Holding
Can any of the company-specific risk be diversified away by investing in both Dine Brands and Playtika Holding 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 Playtika Holding 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 Playtika Holding Corp, you can compare the effects of market volatilities on Dine Brands and Playtika Holding 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 Playtika Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dine Brands and Playtika Holding.
Diversification Opportunities for Dine Brands and Playtika Holding
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Dine and Playtika is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Dine Brands Global and Playtika Holding Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Playtika Holding Corp 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 Playtika Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Playtika Holding Corp has no effect on the direction of Dine Brands i.e., Dine Brands and Playtika Holding go up and down completely randomly.
Pair Corralation between Dine Brands and Playtika Holding
Considering the 90-day investment horizon Dine Brands Global is expected to under-perform the Playtika Holding. In addition to that, Dine Brands is 1.2 times more volatile than Playtika Holding Corp. It trades about -0.02 of its total potential returns per unit of risk. Playtika Holding Corp is currently generating about 0.02 per unit of volatility. If you would invest 785.00 in Playtika Holding Corp on September 3, 2024 and sell it today you would earn a total of 57.00 from holding Playtika Holding Corp or generate 7.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dine Brands Global vs. Playtika Holding Corp
Performance |
| Timeline |
| Dine Brands Global |
| Playtika Holding Corp |
Dine Brands and Playtika Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dine Brands and Playtika Holding
The main advantage of trading using opposite Dine Brands and Playtika Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dine Brands position performs unexpectedly, Playtika Holding 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 Playtika Holding will offset losses from the drop in Playtika Holding's long position.| Dine Brands vs. Bloomin Brands | Dine Brands vs. BJs Restaurants | Dine Brands vs. The Cheesecake Factory | Dine Brands vs. Brinker International |
| Playtika Holding vs. Doubledown Interactive Co | Playtika Holding vs. SohuCom | Playtika Holding vs. Playstudios | Playtika Holding vs. GDEV 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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |