Correlation Between Dine Brands and QuickLogic
Can any of the company-specific risk be diversified away by investing in both Dine Brands and QuickLogic 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 QuickLogic 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 QuickLogic, you can compare the effects of market volatilities on Dine Brands and QuickLogic 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 QuickLogic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dine Brands and QuickLogic.
Diversification Opportunities for Dine Brands and QuickLogic
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Dine and QuickLogic is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Dine Brands Global and QuickLogic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on QuickLogic 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 QuickLogic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of QuickLogic has no effect on the direction of Dine Brands i.e., Dine Brands and QuickLogic go up and down completely randomly.
Pair Corralation between Dine Brands and QuickLogic
Considering the 90-day investment horizon Dine Brands Global is expected to under-perform the QuickLogic. But the stock apears to be less risky and, when comparing its historical volatility, Dine Brands Global is 1.6 times less risky than QuickLogic. The stock trades about -0.04 of its potential returns per unit of risk. The QuickLogic is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 759.00 in QuickLogic on September 2, 2024 and sell it today you would earn a total of 4.00 from holding QuickLogic or generate 0.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dine Brands Global vs. QuickLogic
Performance |
| Timeline |
| Dine Brands Global |
| QuickLogic |
Dine Brands and QuickLogic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dine Brands and QuickLogic
The main advantage of trading using opposite Dine Brands and QuickLogic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dine Brands position performs unexpectedly, QuickLogic 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 QuickLogic will offset losses from the drop in QuickLogic's long position.| Dine Brands vs. Bloomin Brands | Dine Brands vs. BJs Restaurants | Dine Brands vs. The Cheesecake Factory | Dine Brands vs. Brinker International |
| QuickLogic vs. Pixelworks | QuickLogic vs. AXT Inc | QuickLogic vs. Power Integrations | QuickLogic vs. Lattice Semiconductor |
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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