Correlation Between PennyMac Finl and Dine Brands
Can any of the company-specific risk be diversified away by investing in both PennyMac Finl 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 PennyMac Finl and Dine Brands into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PennyMac Finl Svcs and Dine Brands Global, you can compare the effects of market volatilities on PennyMac Finl 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 PennyMac Finl with a short position of Dine Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of PennyMac Finl and Dine Brands.
Diversification Opportunities for PennyMac Finl and Dine Brands
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between PennyMac and Dine is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding PennyMac Finl Svcs 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 PennyMac Finl 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 PennyMac Finl Svcs 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 PennyMac Finl i.e., PennyMac Finl and Dine Brands go up and down completely randomly.
Pair Corralation between PennyMac Finl and Dine Brands
Given the investment horizon of 90 days PennyMac Finl Svcs is expected to generate 0.87 times more return on investment than Dine Brands. However, PennyMac Finl Svcs is 1.14 times less risky than Dine Brands. It trades about 0.08 of its potential returns per unit of risk. Dine Brands Global is currently generating about 0.02 per unit of risk. If you would invest 10,075 in PennyMac Finl Svcs on November 4, 2024 and sell it today you would earn a total of 394.00 from holding PennyMac Finl Svcs or generate 3.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PennyMac Finl Svcs vs. Dine Brands Global
Performance |
| Timeline |
| PennyMac Finl Svcs |
| Dine Brands Global |
PennyMac Finl and Dine Brands Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PennyMac Finl and Dine Brands
The main advantage of trading using opposite PennyMac Finl and Dine Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PennyMac Finl 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.| PennyMac Finl vs. Encore Capital Group | PennyMac Finl vs. Greystone Housing Impact | PennyMac Finl vs. Guild Holdings Co | PennyMac Finl vs. Security National Financial |
| 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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Transaction History View history of all your transactions and understand their impact on performance |