Correlation Between Dunkin Brands and Dine Brands
Can any of the company-specific risk be diversified away by investing in both Dunkin Brands and Dine 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 Dunkin Brands and Dine Brands into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dunkin Brands Group and Dine Brands Global, you can compare the effects of market volatilities on Dunkin Brands and Dine 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 Dunkin Brands with a short position of Dine Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dunkin Brands and Dine Brands.
Diversification Opportunities for Dunkin Brands and Dine Brands
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Dunkin and Dine is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Dunkin Brands Group and Dine Brands Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dine Brands Global and Dunkin 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 Dunkin Brands Group are associated (or correlated) with Dine Brands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dine Brands Global has no effect on the direction of Dunkin Brands i.e., Dunkin Brands and Dine Brands go up and down completely randomly.
Pair Corralation between Dunkin Brands and Dine Brands
If you would invest (100.00) in Dunkin Brands Group on January 24, 2024 and sell it today you would earn a total of 100.00 from holding Dunkin Brands Group 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 |
Dunkin Brands Group vs. Dine Brands Global
Performance |
| Timeline |
| Dunkin Brands Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Dine Brands Global |
Dunkin Brands and Dine Brands Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dunkin Brands and Dine Brands
The main advantage of trading using opposite Dunkin Brands and Dine Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dunkin Brands position performs unexpectedly, Dine 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 Dine Brands will offset losses from the drop in Dine Brands' long position.| Dunkin Brands vs. ATRenew Inc DRC | Dunkin Brands vs. Fair Isaac | Dunkin Brands vs. BBB Foods | Dunkin Brands vs. Arhaus Inc |
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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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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