Correlation Between Fiesta Restaurant and Dine Brands
Can any of the company-specific risk be diversified away by investing in both Fiesta Restaurant 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 Fiesta Restaurant and Dine Brands into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fiesta Restaurant Group and Dine Brands Global, you can compare the effects of market volatilities on Fiesta Restaurant 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 Fiesta Restaurant with a short position of Dine Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fiesta Restaurant and Dine Brands.
Diversification Opportunities for Fiesta Restaurant and Dine Brands
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Fiesta and Dine is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Fiesta Restaurant 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 Fiesta Restaurant 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 Fiesta Restaurant 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 Fiesta Restaurant i.e., Fiesta Restaurant and Dine Brands go up and down completely randomly.
Pair Corralation between Fiesta Restaurant and Dine Brands
If you would invest 4,494 in Dine Brands Global on January 26, 2024 and sell it today you would earn a total of 35.00 from holding Dine Brands Global or generate 0.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Fiesta Restaurant Group vs. Dine Brands Global
Performance |
| Timeline |
| Fiesta Restaurant |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Dine Brands Global |
Fiesta Restaurant and Dine Brands Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fiesta Restaurant and Dine Brands
The main advantage of trading using opposite Fiesta Restaurant and Dine Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fiesta Restaurant 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.| Fiesta Restaurant vs. BJs Restaurants | Fiesta Restaurant vs. Dine Brands Global | Fiesta Restaurant vs. Brinker International | Fiesta Restaurant vs. FAT Brands |
| Dine Brands vs. Imax Corp | Dine Brands vs. Marcus | Dine Brands vs. AMC Networks | Dine Brands vs. Cinemark Holdings |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |