Correlation Between Joint Stock and Dine Brands
Can any of the company-specific risk be diversified away by investing in both Joint Stock 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 Joint Stock and Dine Brands into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Joint Stock and Dine Brands Global, you can compare the effects of market volatilities on Joint Stock 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 Joint Stock with a short position of Dine Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of Joint Stock and Dine Brands.
Diversification Opportunities for Joint Stock and Dine Brands
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Joint and Dine is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Joint Stock 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 Joint Stock 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 Joint Stock 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 Joint Stock i.e., Joint Stock and Dine Brands go up and down completely randomly.
Pair Corralation between Joint Stock and Dine Brands
Given the investment horizon of 90 days Joint Stock is expected to generate 0.92 times more return on investment than Dine Brands. However, Joint Stock is 1.08 times less risky than Dine Brands. It trades about 0.03 of its potential returns per unit of risk. Dine Brands Global is currently generating about -0.04 per unit of risk. If you would invest 9,791 in Joint Stock on September 1, 2024 and sell it today you would earn a total of 849.00 from holding Joint Stock or generate 8.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Joint Stock vs. Dine Brands Global
Performance |
| Timeline |
| Joint Stock |
| Dine Brands Global |
Joint Stock and Dine Brands Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Joint Stock and Dine Brands
The main advantage of trading using opposite Joint Stock and Dine Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Joint Stock 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.| Joint Stock vs. Grocery Outlet Holding | Joint Stock vs. NH Foods Ltd | Joint Stock vs. Natural Alternatives International | Joint Stock vs. Tyson Foods |
| Dine Brands vs. The Wendys Co | Dine Brands vs. Shake Shack | Dine Brands vs. Papa Johns International | Dine Brands vs. Darden Restaurants |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |