Correlation Between GreenTree Hospitality and Dennys Corp
Can any of the company-specific risk be diversified away by investing in both GreenTree Hospitality and Dennys Corp 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 GreenTree Hospitality and Dennys Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GreenTree Hospitality Group and Dennys Corp, you can compare the effects of market volatilities on GreenTree Hospitality and Dennys Corp 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 GreenTree Hospitality with a short position of Dennys Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of GreenTree Hospitality and Dennys Corp.
Diversification Opportunities for GreenTree Hospitality and Dennys Corp
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between GreenTree and Dennys is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding GreenTree Hospitality Group and Dennys Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dennys Corp and GreenTree Hospitality 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 GreenTree Hospitality Group are associated (or correlated) with Dennys Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dennys Corp has no effect on the direction of GreenTree Hospitality i.e., GreenTree Hospitality and Dennys Corp go up and down completely randomly.
Pair Corralation between GreenTree Hospitality and Dennys Corp
Considering the 90-day investment horizon GreenTree Hospitality Group is expected to under-perform the Dennys Corp. But the stock apears to be less risky and, when comparing its historical volatility, GreenTree Hospitality Group is 3.17 times less risky than Dennys Corp. The stock trades about -0.11 of its potential returns per unit of risk. The Dennys Corp is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 515.00 in Dennys Corp on September 20, 2025 and sell it today you would earn a total of 106.00 from holding Dennys Corp or generate 20.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GreenTree Hospitality Group vs. Dennys Corp
Performance |
| Timeline |
| GreenTree Hospitality |
| Dennys Corp |
GreenTree Hospitality and Dennys Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GreenTree Hospitality and Dennys Corp
The main advantage of trading using opposite GreenTree Hospitality and Dennys Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GreenTree Hospitality position performs unexpectedly, Dennys Corp 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 Dennys Corp will offset losses from the drop in Dennys Corp's long position.| GreenTree Hospitality vs. Viomi Technology ADR | GreenTree Hospitality vs. Rocky Brands | GreenTree Hospitality vs. RCI Hospitality Holdings | GreenTree Hospitality vs. Dennys Corp |
| Dennys Corp vs. RCI Hospitality Holdings | Dennys Corp vs. Twin Hospitality Group | Dennys Corp vs. Rocky Brands | Dennys Corp vs. GreenTree Hospitality Group |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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