Correlation Between Dine Brands and Weyco
Can any of the company-specific risk be diversified away by investing in both Dine Brands and Weyco 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 Weyco 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 Weyco Group, you can compare the effects of market volatilities on Dine Brands and Weyco 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 Weyco. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dine Brands and Weyco.
Diversification Opportunities for Dine Brands and Weyco
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Dine and Weyco is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Dine Brands Global and Weyco Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Weyco Group 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 Weyco. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Weyco Group has no effect on the direction of Dine Brands i.e., Dine Brands and Weyco go up and down completely randomly.
Pair Corralation between Dine Brands and Weyco
Considering the 90-day investment horizon Dine Brands Global is expected to under-perform the Weyco. In addition to that, Dine Brands is 1.28 times more volatile than Weyco Group. It trades about -0.44 of its total potential returns per unit of risk. Weyco Group is currently generating about -0.06 per unit of volatility. If you would invest 3,632 in Weyco Group on November 28, 2024 and sell it today you would lose (86.00) from holding Weyco Group or give up 2.37% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dine Brands Global vs. Weyco Group
Performance |
| Timeline |
| Dine Brands Global |
| Weyco Group |
Dine Brands and Weyco Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dine Brands and Weyco
The main advantage of trading using opposite Dine Brands and Weyco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dine Brands position performs unexpectedly, Weyco 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 Weyco will offset losses from the drop in Weyco's long position.| Dine Brands vs. Bloomin Brands | Dine Brands vs. BJs Restaurants | Dine Brands vs. The Cheesecake Factory | Dine Brands vs. Brinker International |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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