Correlation Between Dine Brands and One Group
Can any of the company-specific risk be diversified away by investing in both Dine Brands and One Group 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 One Group 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 One Group Hospitality, you can compare the effects of market volatilities on Dine Brands and One Group 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 One Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dine Brands and One Group.
Diversification Opportunities for Dine Brands and One Group
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Dine and One is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Dine Brands Global and One Group Hospitality in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on One Group Hospitality 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 One Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of One Group Hospitality has no effect on the direction of Dine Brands i.e., Dine Brands and One Group go up and down completely randomly.
Pair Corralation between Dine Brands and One Group
Considering the 90-day investment horizon Dine Brands Global is expected to generate 0.79 times more return on investment than One Group. However, Dine Brands Global is 1.27 times less risky than One Group. It trades about 0.12 of its potential returns per unit of risk. One Group Hospitality is currently generating about 0.05 per unit of risk. If you would invest 2,995 in Dine Brands Global on August 26, 2024 and sell it today you would earn a total of 301.00 from holding Dine Brands Global or generate 10.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dine Brands Global vs. One Group Hospitality
Performance |
| Timeline |
| Dine Brands Global |
| One Group Hospitality |
Dine Brands and One Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dine Brands and One Group
The main advantage of trading using opposite Dine Brands and One Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dine Brands position performs unexpectedly, One Group 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 One Group will offset losses from the drop in One Group's long position.| Dine Brands vs. Bloomin Brands | Dine Brands vs. BJs Restaurants | Dine Brands vs. The Cheesecake Factory | Dine Brands vs. Brinker International |
| One Group vs. FAT Brands | One Group vs. Potbelly Co | One Group vs. BJs Restaurants | One Group vs. Rave Restaurant Group |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |