Correlation Between DP Poland and Dine Brands

Specify exactly 2 symbols:
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 Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy98.46%
ValuesDaily Returns

DP Poland Plc  vs.  Dine Brands Global

 Performance 
       Timeline  
DP Poland Plc 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days DP Poland Plc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's technical and fundamental indicators remain rather sound which may send shares a bit higher in December 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.
Dine Brands Global 

Risk-Adjusted Performance

Good

 
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.

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.
The idea behind DP Poland Plc 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.
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.

Other Complementary Tools

Companies Directory
Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals
Risk-Return Analysis
View associations between returns expected from investment and the risk you assume
Balance Of Power
Check stock momentum by analyzing Balance Of Power indicator and other technical ratios
Portfolio Optimization
Compute new portfolio that will generate highest expected return given your specified tolerance for risk
Portfolio Dashboard
Portfolio dashboard that provides centralized access to all your investments