Correlation Between Dine Brands and DigiAsia Corp
Can any of the company-specific risk be diversified away by investing in both Dine Brands and DigiAsia Corp 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 DigiAsia Corp 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 DigiAsia Corp, you can compare the effects of market volatilities on Dine Brands and DigiAsia Corp 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 DigiAsia Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dine Brands and DigiAsia Corp.
Diversification Opportunities for Dine Brands and DigiAsia Corp
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Dine and DigiAsia is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Dine Brands Global and DigiAsia Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DigiAsia Corp 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 DigiAsia Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DigiAsia Corp has no effect on the direction of Dine Brands i.e., Dine Brands and DigiAsia Corp go up and down completely randomly.
Pair Corralation between Dine Brands and DigiAsia Corp
Considering the 90-day investment horizon Dine Brands Global is expected to generate 0.21 times more return on investment than DigiAsia Corp. However, Dine Brands Global is 4.66 times less risky than DigiAsia Corp. It trades about -0.04 of its potential returns per unit of risk. DigiAsia Corp is currently generating about -0.08 per unit of risk. If you would invest 5,981 in Dine Brands Global on September 20, 2024 and sell it today you would lose (2,982) from holding Dine Brands Global or give up 49.86% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 37.1% |
Values | Daily Returns |
Dine Brands Global vs. DigiAsia Corp
Performance |
Timeline |
Dine Brands Global |
DigiAsia Corp |
Dine Brands and DigiAsia Corp Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Dine Brands and DigiAsia Corp
The main advantage of trading using opposite Dine Brands and DigiAsia Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dine Brands position performs unexpectedly, DigiAsia Corp 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 DigiAsia Corp will offset losses from the drop in DigiAsia Corp's long position.Dine Brands vs. Bloomin Brands | Dine Brands vs. BJs Restaurants | Dine Brands vs. The Cheesecake Factory | Dine Brands vs. Brinker International |
DigiAsia Corp vs. Global Ship Lease | DigiAsia Corp vs. BJs Restaurants | DigiAsia Corp vs. Vestis | DigiAsia Corp vs. Dine Brands Global |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
Share Portfolio Track or share privately all of your investments from the convenience of any device | |
Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |