Correlation Between Inspired Entertainment and Dennys Corp
Can any of the company-specific risk be diversified away by investing in both Inspired Entertainment 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 Inspired Entertainment and Dennys Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inspired Entertainment and Dennys Corp, you can compare the effects of market volatilities on Inspired Entertainment 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 Inspired Entertainment with a short position of Dennys Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inspired Entertainment and Dennys Corp.
Diversification Opportunities for Inspired Entertainment and Dennys Corp
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Inspired and Dennys is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Inspired Entertainment and Dennys Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dennys Corp and Inspired Entertainment 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 Inspired Entertainment 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 Inspired Entertainment i.e., Inspired Entertainment and Dennys Corp go up and down completely randomly.
Pair Corralation between Inspired Entertainment and Dennys Corp
Given the investment horizon of 90 days Inspired Entertainment is expected to generate 501.45 times less return on investment than Dennys Corp. But when comparing it to its historical volatility, Inspired Entertainment is 2.12 times less risky than Dennys Corp. It trades about 0.0 of its potential returns per unit of risk. Dennys Corp is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 492.00 in Dennys Corp on October 6, 2025 and sell it today you would earn a total of 129.00 from holding Dennys Corp or generate 26.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inspired Entertainment vs. Dennys Corp
Performance |
| Timeline |
| Inspired Entertainment |
| Dennys Corp |
Inspired Entertainment and Dennys Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inspired Entertainment and Dennys Corp
The main advantage of trading using opposite Inspired Entertainment and Dennys Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inspired Entertainment 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.| Inspired Entertainment vs. Studio City International | Inspired Entertainment vs. JAKKS Pacific | Inspired Entertainment vs. Hamilton Beach Brands | Inspired Entertainment vs. SunCar Technology Group |
| 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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