Correlation Between Brinker International and Enagas SA
Can any of the company-specific risk be diversified away by investing in both Brinker International and Enagas SA 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 Brinker International and Enagas SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Brinker International and Enagas SA, you can compare the effects of market volatilities on Brinker International and Enagas SA 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 Brinker International with a short position of Enagas SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brinker International and Enagas SA.
Diversification Opportunities for Brinker International and Enagas SA
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Brinker and Enagas is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Brinker International and Enagas SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enagas SA and Brinker International 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 Brinker International are associated (or correlated) with Enagas SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enagas SA has no effect on the direction of Brinker International i.e., Brinker International and Enagas SA go up and down completely randomly.
Pair Corralation between Brinker International and Enagas SA
If you would invest 4,020 in Brinker International on November 1, 2024 and sell it today you would earn a total of 13,959 from holding Brinker International or generate 347.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Brinker International vs. Enagas SA
Performance |
| Timeline |
| Brinker International |
| Enagas SA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Brinker International and Enagas SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brinker International and Enagas SA
The main advantage of trading using opposite Brinker International and Enagas SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brinker International position performs unexpectedly, Enagas SA 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 Enagas SA will offset losses from the drop in Enagas SA's long position.| Brinker International vs. Dennys Corp | Brinker International vs. Bloomin Brands | Brinker International vs. Jack In The | Brinker International vs. Dine Brands Global |
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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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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