Correlation Between Dine Brands and Okeanis Eco
Can any of the company-specific risk be diversified away by investing in both Dine Brands and Okeanis Eco 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 Dine Brands and Okeanis Eco into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dine Brands Global and Okeanis Eco Tankers, you can compare the effects of market volatilities on Dine Brands and Okeanis Eco 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 Dine Brands with a short position of Okeanis Eco. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dine Brands and Okeanis Eco.
Diversification Opportunities for Dine Brands and Okeanis Eco
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Dine and Okeanis is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Dine Brands Global and Okeanis Eco Tankers in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Okeanis Eco Tankers and Dine Brands 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 Dine Brands Global are associated (or correlated) with Okeanis Eco. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Okeanis Eco Tankers has no effect on the direction of Dine Brands i.e., Dine Brands and Okeanis Eco go up and down completely randomly.
Pair Corralation between Dine Brands and Okeanis Eco
Considering the 90-day investment horizon Dine Brands Global is expected to under-perform the Okeanis Eco. But the stock apears to be less risky and, when comparing its historical volatility, Dine Brands Global is 1.2 times less risky than Okeanis Eco. The stock trades about -0.1 of its potential returns per unit of risk. The Okeanis Eco Tankers is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 2,358 in Okeanis Eco Tankers on November 22, 2024 and sell it today you would earn a total of 88.00 from holding Okeanis Eco Tankers or generate 3.73% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Dine Brands Global vs. Okeanis Eco Tankers
Performance |
Timeline |
Dine Brands Global |
Okeanis Eco Tankers |
Dine Brands and Okeanis Eco Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Dine Brands and Okeanis Eco
The main advantage of trading using opposite Dine Brands and Okeanis Eco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dine Brands position performs unexpectedly, Okeanis Eco 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 Okeanis Eco will offset losses from the drop in Okeanis Eco's long position.Dine Brands vs. Bloomin Brands | ||
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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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