Correlation Between Bloomin Brands and Sentinel Total
Can any of the company-specific risk be diversified away by investing in both Bloomin Brands and Sentinel Total 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 Bloomin Brands and Sentinel Total into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bloomin Brands and Sentinel Total Return, you can compare the effects of market volatilities on Bloomin Brands and Sentinel Total 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 Bloomin Brands with a short position of Sentinel Total. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bloomin Brands and Sentinel Total.
Diversification Opportunities for Bloomin Brands and Sentinel Total
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bloomin and Sentinel is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bloomin Brands and Sentinel Total Return in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sentinel Total Return and Bloomin 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 Bloomin Brands are associated (or correlated) with Sentinel Total. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sentinel Total Return has no effect on the direction of Bloomin Brands i.e., Bloomin Brands and Sentinel Total go up and down completely randomly.
Pair Corralation between Bloomin Brands and Sentinel Total
If you would invest 1,722 in Bloomin Brands on January 19, 2024 and sell it today you would earn a total of 981.00 from holding Bloomin Brands or generate 56.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Bloomin Brands vs. Sentinel Total Return
Performance |
| Timeline |
| Bloomin Brands |
| Sentinel Total Return |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bloomin Brands and Sentinel Total Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bloomin Brands and Sentinel Total
The main advantage of trading using opposite Bloomin Brands and Sentinel Total positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bloomin Brands position performs unexpectedly, Sentinel Total 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 Sentinel Total will offset losses from the drop in Sentinel Total's long position.The idea behind Bloomin Brands and Sentinel Total Return pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Sentinel Total vs. Prudential Short Duration | Sentinel Total vs. Easterly Snow Longshort | Sentinel Total vs. Ab Select Longshort | Sentinel Total vs. Siit Ultra Short |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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