Correlation Analysis Between Darden and Bloomin

       
Investment Horizon     30 Days    Login   to change
This module allows you to analyze existing cross correlation between Darden Restaurants Inc and Bloomin Brands Inc. You can compare the effects of market volatilities on Darden and Bloomin 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 Darden with a short position of Bloomin. Please also check ongoing floating volatility patterns of Darden and Bloomin.
 Darden Restaurants Inc.  vs   Bloomin Brands Inc.
Daily Returns (%)
BLMN   DRI   
Benchmark  Embed   Timeline 
Considering 30-days investment horizon, Darden Restaurants Inc is expected to generate 0.78 times more return on investment than Bloomin. However, Darden Restaurants Inc is 1.29 times less risky than Bloomin. It trades about -0.07 of its potential returns per unit of risk. Bloomin Brands Inc is currently generating about -0.2 per unit of risk. If you would invest  7,080  in Darden Restaurants Inc on August 6, 2015 and sell it today you would lose (202.00) from holding Darden Restaurants Inc or give up 2.85% of portfolio value over 30 days.

Correlation Coefficient

0.7

Parameters

Time Period1 Month [change]
DirectionPositive BLMN Moved Up vs DRI
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns
  

Diversification

Poor diversification

Overlapping area represents amount of risk that can be diversified away by holding Darden Restaurants Inc. and Bloomin Brands Inc. in the same portfolio assuming nothing else is changed

Historical Performance Chart

Comparative Volatility

Predicted Return Density  
Benchmark  Embed   Returns 

Darden Restaurants

  

Risk-adjusted Performance

Over the last 30 days Darden Restaurants Inc has generated negative risk-adjusted returns adding no value to investors with long positions.

Pair trading matchups for Darden

  

Bloomin Brands

  

Risk-adjusted Performance

Over the last 30 days Bloomin Brands Inc has generated negative risk-adjusted returns adding no value to investors with long positions.

Pair trading matchups for Bloomin