Correlation Between Jack In and Dine Brands
Can any of the company-specific risk be diversified away by investing in both Jack In 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 Jack In and Dine Brands into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jack In The and Dine Brands Global, you can compare the effects of market volatilities on Jack In 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 Jack In with a short position of Dine Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jack In and Dine Brands.
Diversification Opportunities for Jack In and Dine Brands
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jack and Dine is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Jack In The 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 Jack In 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 Jack In The 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 Jack In i.e., Jack In and Dine Brands go up and down completely randomly.
Pair Corralation between Jack In and Dine Brands
Given the investment horizon of 90 days Jack In The is expected to generate 1.0 times more return on investment than Dine Brands. However, Jack In The is 1.0 times less risky than Dine Brands. It trades about -0.01 of its potential returns per unit of risk. Dine Brands Global is currently generating about -0.02 per unit of risk. If you would invest 7,824 in Jack In The on January 26, 2024 and sell it today you would lose (1,983) from holding Jack In The or give up 25.35% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 99.8% |
Values | Daily Returns |
Jack In The vs. Dine Brands Global
Performance |
Timeline |
Jack In |
Dine Brands Global |
Jack In and Dine Brands Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Jack In and Dine Brands
The main advantage of trading using opposite Jack In and Dine Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jack In 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.The idea behind Jack In The and Dine Brands Global 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.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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
Commodity Directory Find actively traded commodities issued by global exchanges | |
Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |