Correlation Between Dine Brands and GP Strategies
Can any of the company-specific risk be diversified away by investing in both Dine Brands and GP Strategies 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 GP Strategies 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 GP Strategies, you can compare the effects of market volatilities on Dine Brands and GP Strategies 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 GP Strategies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dine Brands and GP Strategies.
Diversification Opportunities for Dine Brands and GP Strategies
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Dine and GPX is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Dine Brands Global and GP Strategies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GP Strategies 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 GP Strategies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GP Strategies has no effect on the direction of Dine Brands i.e., Dine Brands and GP Strategies go up and down completely randomly.
Pair Corralation between Dine Brands and GP Strategies
If you would invest (100.00) in GP Strategies on March 8, 2024 and sell it today you would earn a total of 100.00 from holding GP Strategies or generate -100.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Dine Brands Global vs. GP Strategies
Performance |
Timeline |
Dine Brands Global |
GP Strategies |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Dine Brands and GP Strategies Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Dine Brands and GP Strategies
The main advantage of trading using opposite Dine Brands and GP Strategies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dine Brands position performs unexpectedly, GP Strategies 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 GP Strategies will offset losses from the drop in GP Strategies' long position.Dine Brands vs. Malaga Financial | Dine Brands vs. LiCycle Holdings Corp | Dine Brands vs. Kosmos Energy | Dine Brands vs. Euronav NV |
GP Strategies vs. Griffon | GP Strategies vs. Axcelis Technologies | GP Strategies vs. Topbuild Corp | GP Strategies vs. FMC Corporation |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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