Correlation Between Investor and Bloomin Brands
Can any of the company-specific risk be diversified away by investing in both Investor and Bloomin 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 Investor and Bloomin Brands into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Investor AB and Bloomin Brands, you can compare the effects of market volatilities on Investor and Bloomin 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 Investor with a short position of Bloomin Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of Investor and Bloomin Brands.
Diversification Opportunities for Investor and Bloomin Brands
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Investor and Bloomin is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Investor AB and Bloomin Brands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bloomin Brands and Investor 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 Investor AB are associated (or correlated) with Bloomin Brands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bloomin Brands has no effect on the direction of Investor i.e., Investor and Bloomin Brands go up and down completely randomly.
Pair Corralation between Investor and Bloomin Brands
If you would invest 2,329 in Bloomin Brands on January 17, 2024 and sell it today you would earn a total of 350.00 from holding Bloomin Brands or generate 15.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Investor AB vs. Bloomin Brands
Performance |
| Timeline |
| Investor AB |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Bloomin Brands |
Investor and Bloomin Brands Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Investor and Bloomin Brands
The main advantage of trading using opposite Investor and Bloomin Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Investor position performs unexpectedly, Bloomin 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 Bloomin Brands will offset losses from the drop in Bloomin Brands' long position.| Investor vs. DataDot Technology Limited | Investor vs. Griffon | Investor vs. Cementos Pacasmayo SAA | Investor vs. Skyline |
| Bloomin Brands vs. Dine Brands Global | Bloomin Brands vs. BJs Restaurants | Bloomin Brands vs. The Cheesecake Factory | Bloomin 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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