Correlation Between Brinker International and Pinstripes Holdings
Can any of the company-specific risk be diversified away by investing in both Brinker International and Pinstripes 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 Brinker International and Pinstripes Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Brinker International and Pinstripes Holdings, you can compare the effects of market volatilities on Brinker International and Pinstripes 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 Brinker International with a short position of Pinstripes Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brinker International and Pinstripes Holdings.
Diversification Opportunities for Brinker International and Pinstripes Holdings
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Brinker and Pinstripes is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Brinker International and Pinstripes Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pinstripes Holdings 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 Pinstripes Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pinstripes Holdings has no effect on the direction of Brinker International i.e., Brinker International and Pinstripes Holdings go up and down completely randomly.
Pair Corralation between Brinker International and Pinstripes Holdings
Considering the 90-day investment horizon Brinker International is expected to generate 0.37 times more return on investment than Pinstripes Holdings. However, Brinker International is 2.7 times less risky than Pinstripes Holdings. It trades about 0.52 of its potential returns per unit of risk. Pinstripes Holdings is currently generating about 0.01 per unit of risk. If you would invest 9,701 in Brinker International on August 30, 2024 and sell it today you would earn a total of 3,368 from holding Brinker International or generate 34.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Brinker International vs. Pinstripes Holdings
Performance |
| Timeline |
| Brinker International |
| Pinstripes Holdings |
Brinker International and Pinstripes Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brinker International and Pinstripes Holdings
The main advantage of trading using opposite Brinker International and Pinstripes Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brinker International position performs unexpectedly, Pinstripes 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 Pinstripes Holdings will offset losses from the drop in Pinstripes Holdings' long position.| Brinker International vs. Dennys Corp | Brinker International vs. Bloomin Brands | Brinker International vs. Jack In The | Brinker International vs. Dine Brands Global |
| Pinstripes Holdings vs. Chipotle Mexican Grill | Pinstripes Holdings vs. Yum Brands | Pinstripes Holdings vs. The Wendys Co | Pinstripes Holdings vs. McDonalds |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Global Correlations Find global opportunities by holding instruments from different markets |