Correlation Between Dine Brands and Saguaro Holdings
Can any of the company-specific risk be diversified away by investing in both Dine Brands and Saguaro Holdings 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 Saguaro Holdings 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 Saguaro Holdings Corp, you can compare the effects of market volatilities on Dine Brands and Saguaro Holdings 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 Saguaro Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dine Brands and Saguaro Holdings.
Diversification Opportunities for Dine Brands and Saguaro Holdings
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Dine and Saguaro is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Dine Brands Global and Saguaro Holdings Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saguaro Holdings 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 Saguaro Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saguaro Holdings Corp has no effect on the direction of Dine Brands i.e., Dine Brands and Saguaro Holdings go up and down completely randomly.
Pair Corralation between Dine Brands and Saguaro Holdings
Considering the 90-day investment horizon Dine Brands Global is expected to generate 0.55 times more return on investment than Saguaro Holdings. However, Dine Brands Global is 1.82 times less risky than Saguaro Holdings. It trades about -0.03 of its potential returns per unit of risk. Saguaro Holdings Corp is currently generating about -0.04 per unit of risk. If you would invest 6,260 in Dine Brands Global on September 3, 2024 and sell it today you would lose (2,668) from holding Dine Brands Global or give up 42.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Dine Brands Global vs. Saguaro Holdings Corp
Performance |
| Timeline |
| Dine Brands Global |
| Saguaro Holdings Corp |
Dine Brands and Saguaro Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dine Brands and Saguaro Holdings
The main advantage of trading using opposite Dine Brands and Saguaro Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dine Brands position performs unexpectedly, Saguaro Holdings 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 Saguaro Holdings will offset losses from the drop in Saguaro Holdings' long position.| Dine Brands vs. Bloomin Brands | Dine Brands vs. BJs Restaurants | Dine Brands vs. The Cheesecake Factory | Dine Brands vs. Brinker International |
| Saguaro Holdings vs. Dine Brands Global | Saguaro Holdings vs. Willamette Valley Vineyards | Saguaro Holdings vs. CAVA Group, | Saguaro Holdings vs. Turning Point Brands |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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