Correlation Between Fiesta Restaurant and Dine Brands
Can any of the company-specific risk be diversified away by investing in both Fiesta Restaurant and Dine Brands 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 Fiesta Restaurant and Dine Brands into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fiesta Restaurant Group and Dine Brands Global, you can compare the effects of market volatilities on Fiesta Restaurant and Dine Brands 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 Fiesta Restaurant with a short position of Dine Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fiesta Restaurant and Dine Brands.
Diversification Opportunities for Fiesta Restaurant and Dine Brands
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Fiesta and Dine is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Fiesta Restaurant Group and Dine Brands Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dine Brands Global and Fiesta Restaurant 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 Fiesta Restaurant Group are associated (or correlated) with Dine Brands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dine Brands Global has no effect on the direction of Fiesta Restaurant i.e., Fiesta Restaurant and Dine Brands go up and down completely randomly.
Pair Corralation between Fiesta Restaurant and Dine Brands
If you would invest 3,118 in Dine Brands Global on August 27, 2024 and sell it today you would earn a total of 178.00 from holding Dine Brands Global or generate 5.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Fiesta Restaurant Group vs. Dine Brands Global
Performance |
| Timeline |
| Fiesta Restaurant |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Dine Brands Global |
Fiesta Restaurant and Dine Brands Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fiesta Restaurant and Dine Brands
The main advantage of trading using opposite Fiesta Restaurant and Dine Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fiesta Restaurant position performs unexpectedly, Dine Brands 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 Dine Brands will offset losses from the drop in Dine Brands' long position.| Fiesta Restaurant vs. BJs Restaurants | Fiesta Restaurant vs. Dine Brands Global | Fiesta Restaurant vs. Brinker International | Fiesta Restaurant vs. FAT Brands |
| 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |