Correlation Between DP Poland and Dine Brands
Can any of the company-specific risk be diversified away by investing in both DP Poland 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 DP Poland and Dine Brands into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DP Poland Plc and Dine Brands Global, you can compare the effects of market volatilities on DP Poland 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 DP Poland with a short position of Dine Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of DP Poland and Dine Brands.
Diversification Opportunities for DP Poland and Dine Brands
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between DPP and Dine is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding DP Poland Plc 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 DP Poland 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 DP Poland Plc 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 DP Poland i.e., DP Poland and Dine Brands go up and down completely randomly.
Pair Corralation between DP Poland and Dine Brands
Assuming the 90 days trading horizon DP Poland Plc is expected to under-perform the Dine Brands. But the stock apears to be less risky and, when comparing its historical volatility, DP Poland Plc is 1.24 times less risky than Dine Brands. The stock trades about -0.14 of its potential returns per unit of risk. The Dine Brands Global is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 2,120 in Dine Brands Global on August 19, 2025 and sell it today you would earn a total of 522.00 from holding Dine Brands Global or generate 24.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.46% |
| Values | Daily Returns |
DP Poland Plc vs. Dine Brands Global
Performance |
| Timeline |
| DP Poland Plc |
| Dine Brands Global |
DP Poland and Dine Brands Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DP Poland and Dine Brands
The main advantage of trading using opposite DP Poland and Dine Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DP Poland 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.| DP Poland vs. Verizon Communications | DP Poland vs. Canadian General Investments | DP Poland vs. EJF Investments | DP Poland vs. Evolution Gaming Group |
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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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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