Correlation Between Dine Brands and Haverty Furniture

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Can any of the company-specific risk be diversified away by investing in both Dine Brands and Haverty Furniture 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 Haverty Furniture 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 Haverty Furniture Companies, you can compare the effects of market volatilities on Dine Brands and Haverty Furniture 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 Haverty Furniture. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dine Brands and Haverty Furniture.

Diversification Opportunities for Dine Brands and Haverty Furniture

0.75
  Correlation Coefficient

Poor diversification

The 3 months correlation between Dine and Haverty is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Dine Brands Global and Haverty Furniture Companies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haverty Furniture 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 Haverty Furniture. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Haverty Furniture has no effect on the direction of Dine Brands i.e., Dine Brands and Haverty Furniture go up and down completely randomly.

Pair Corralation between Dine Brands and Haverty Furniture

Considering the 90-day investment horizon Dine Brands Global is expected to generate 1.43 times more return on investment than Haverty Furniture. However, Dine Brands is 1.43 times more volatile than Haverty Furniture Companies. It trades about 0.13 of its potential returns per unit of risk. Haverty Furniture Companies is currently generating about 0.14 per unit of risk. If you would invest  2,670  in Dine Brands Global on October 7, 2025 and sell it today you would earn a total of  652.00  from holding Dine Brands Global or generate 24.42% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Dine Brands Global  vs.  Haverty Furniture Companies

 Performance 
       Timeline  
Dine Brands Global 

Risk-Adjusted Performance

Fair

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Dine Brands Global are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating forward indicators, Dine Brands displayed solid returns over the last few months and may actually be approaching a breakup point.
Haverty Furniture 

Risk-Adjusted Performance

Fair

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Haverty Furniture Companies are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unfluctuating basic indicators, Haverty Furniture unveiled solid returns over the last few months and may actually be approaching a breakup point.

Dine Brands and Haverty Furniture Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Dine Brands and Haverty Furniture

The main advantage of trading using opposite Dine Brands and Haverty Furniture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dine Brands position performs unexpectedly, Haverty Furniture 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 Haverty Furniture will offset losses from the drop in Haverty Furniture's long position.
The idea behind Dine Brands Global and Haverty Furniture Companies 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .

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