Correlation Between Dine Brands and SHUAA Partners
Can any of the company-specific risk be diversified away by investing in both Dine Brands and SHUAA Partners 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 SHUAA Partners 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 SHUAA Partners Acquisition, you can compare the effects of market volatilities on Dine Brands and SHUAA Partners 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 SHUAA Partners. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dine Brands and SHUAA Partners.
Diversification Opportunities for Dine Brands and SHUAA Partners
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Dine and SHUAA is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Dine Brands Global and SHUAA Partners Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SHUAA Partners Acqui 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 SHUAA Partners. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SHUAA Partners Acqui has no effect on the direction of Dine Brands i.e., Dine Brands and SHUAA Partners go up and down completely randomly.
Pair Corralation between Dine Brands and SHUAA Partners
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. SHUAA Partners Acquisition
Performance |
| Timeline |
| Dine Brands Global |
| SHUAA Partners Acqui |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Dine Brands and SHUAA Partners Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dine Brands and SHUAA Partners
The main advantage of trading using opposite Dine Brands and SHUAA Partners positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dine Brands position performs unexpectedly, SHUAA Partners 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 SHUAA Partners will offset losses from the drop in SHUAA Partners' long position.| Dine Brands vs. Bloomin Brands | Dine Brands vs. BJs Restaurants | Dine Brands vs. The Cheesecake Factory | Dine Brands vs. Brinker International |
| SHUAA Partners vs. Dine Brands Global | SHUAA Partners vs. Ryman Hospitality Properties | SHUAA Partners vs. The Wendys Co | SHUAA Partners vs. Sweetgreen |
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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