Correlation Between Dine Brands and Xiabuxiabu Catering

Can any of the company-specific risk be diversified away by investing in both Dine Brands and Xiabuxiabu Catering 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 Dine Brands and Xiabuxiabu Catering into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Dine Brands Global and Xiabuxiabu Catering Management, you can compare the effects of market volatilities on Dine Brands and Xiabuxiabu Catering 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 Dine Brands with a short position of Xiabuxiabu Catering. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dine Brands and Xiabuxiabu Catering.

Diversification Opportunities for Dine Brands and Xiabuxiabu Catering

0.0

Correlation Coefficient

Dine Brands  Xiabuxiabu Catering

Pay attention - limited upside

The 3 months correlation between Dine and Xiabuxiabu is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Dine Brands Global and Xiabuxiabu Catering Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiabuxiabu Catering and Dine 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 Dine Brands Global are associated (or correlated) with Xiabuxiabu Catering. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiabuxiabu Catering has no effect on the direction of Dine Brands i.e., Dine Brands and Xiabuxiabu Catering go up and down completely randomly.

Pair Corralation between Dine Brands and Xiabuxiabu Catering

If you would invest  228.00  in Xiabuxiabu Catering Management on February 1, 2024 and sell it today you would earn a total of  0.00  from holding Xiabuxiabu Catering Management or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	2.38%
Values	Daily Returns

Dine Brands Global  vs.  Xiabuxiabu Catering Management

Dine Brands Global

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Dine Brands Global has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy forward indicators, Dine Brands is not utilizing all of its potentials. The newest stock price disarray, may contribute to short-term losses for the investors.

Xiabuxiabu Catering

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Xiabuxiabu Catering Management has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Xiabuxiabu Catering is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Dine Brands and Xiabuxiabu Catering

The main advantage of trading using opposite Dine Brands and Xiabuxiabu Catering positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dine Brands position performs unexpectedly, Xiabuxiabu Catering 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 Xiabuxiabu Catering will offset losses from the drop in Xiabuxiabu Catering's long position.

The idea behind Dine Brands Global and Xiabuxiabu Catering Management 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.

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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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.