Correlation Between Mind Technology and Dine Brands
Can any of the company-specific risk be diversified away by investing in both Mind Technology 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 Mind Technology and Dine Brands into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mind Technology and Dine Brands Global, you can compare the effects of market volatilities on Mind Technology 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 Mind Technology with a short position of Dine Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mind Technology and Dine Brands.
Diversification Opportunities for Mind Technology and Dine Brands
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Mind and Dine is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Mind Technology 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 Mind Technology 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 Mind Technology 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 Mind Technology i.e., Mind Technology and Dine Brands go up and down completely randomly.
Pair Corralation between Mind Technology and Dine Brands
Given the investment horizon of 90 days Mind Technology is expected to under-perform the Dine Brands. In addition to that, Mind Technology is 2.67 times more volatile than Dine Brands Global. It trades about -0.04 of its total potential returns per unit of risk. Dine Brands Global is currently generating about -0.04 per unit of volatility. If you would invest 5,877 in Dine Brands Global on September 2, 2024 and sell it today you would lose (2,285) from holding Dine Brands Global or give up 38.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mind Technology vs. Dine Brands Global
Performance |
| Timeline |
| Mind Technology |
| Dine Brands Global |
Mind Technology and Dine Brands Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mind Technology and Dine Brands
The main advantage of trading using opposite Mind Technology and Dine Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mind Technology 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.| Mind Technology vs. Spectris plc | Mind Technology vs. Electro Sensors | Mind Technology vs. Sono Tek Corp | Mind Technology vs. Vishay Precision Group |
| 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 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.
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