Correlation Between Saguaro Holdings and Dine Brands
Can any of the company-specific risk be diversified away by investing in both Saguaro Holdings 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 Saguaro Holdings and Dine Brands into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Saguaro Holdings Corp and Dine Brands Global, you can compare the effects of market volatilities on Saguaro Holdings 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 Saguaro Holdings with a short position of Dine Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saguaro Holdings and Dine Brands.
Diversification Opportunities for Saguaro Holdings and Dine Brands
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Saguaro and Dine is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Saguaro Holdings Corp 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 Saguaro Holdings 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 Saguaro Holdings Corp 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 Saguaro Holdings i.e., Saguaro Holdings and Dine Brands go up and down completely randomly.
Pair Corralation between Saguaro Holdings and Dine Brands
If you would invest 2,970 in Dine Brands Global on September 3, 2024 and sell it today you would earn a total of 622.00 from holding Dine Brands Global or generate 20.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 98.46% |
| Values | Daily Returns |
Saguaro Holdings Corp vs. Dine Brands Global
Performance |
| Timeline |
| Saguaro Holdings Corp |
| Dine Brands Global |
Saguaro Holdings and Dine Brands Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saguaro Holdings and Dine Brands
The main advantage of trading using opposite Saguaro Holdings and Dine Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saguaro Holdings 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.| Saguaro Holdings vs. Dine Brands Global | Saguaro Holdings vs. Willamette Valley Vineyards | Saguaro Holdings vs. CAVA Group, | Saguaro Holdings vs. Turning Point 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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