Correlation Between NYSE Composite and Bloomin Brands
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and Bloomin 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 NYSE Composite and Bloomin Brands into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Bloomin Brands, you can compare the effects of market volatilities on NYSE Composite and Bloomin 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 NYSE Composite with a short position of Bloomin Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Bloomin Brands.
Diversification Opportunities for NYSE Composite and Bloomin Brands
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between NYSE and Bloomin is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Bloomin Brands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bloomin Brands and NYSE Composite 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 NYSE Composite are associated (or correlated) with Bloomin Brands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bloomin Brands has no effect on the direction of NYSE Composite i.e., NYSE Composite and Bloomin Brands go up and down completely randomly.
Pair Corralation between NYSE Composite and Bloomin Brands
Assuming the 90 days trading horizon NYSE Composite is expected to generate 0.16 times more return on investment than Bloomin Brands. However, NYSE Composite is 6.41 times less risky than Bloomin Brands. It trades about 0.24 of its potential returns per unit of risk. Bloomin Brands is currently generating about -0.16 per unit of risk. If you would invest 1,954,967 in NYSE Composite on August 27, 2024 and sell it today you would earn a total of 67,069 from holding NYSE Composite or generate 3.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NYSE Composite vs. Bloomin Brands
Performance |
| Timeline |
NYSE Composite and Bloomin Brands Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Bloomin Brands
Pair trading matchups for Bloomin Brands
Pair Trading with NYSE Composite and Bloomin Brands
The main advantage of trading using opposite NYSE Composite and Bloomin Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Bloomin 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 Bloomin Brands will offset losses from the drop in Bloomin Brands' long position.| NYSE Composite vs. Hooker Furniture | NYSE Composite vs. Hudson Pacific Properties | NYSE Composite vs. Canlan Ice Sports | NYSE Composite vs. Boston Properties |
| Bloomin Brands vs. Dine Brands Global | Bloomin Brands vs. BJs Restaurants | Bloomin Brands vs. The Cheesecake Factory | Bloomin 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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