Correlation Between Brinker International and Deutsche Wohnen
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By analyzing existing cross correlation between Brinker International and Deutsche Wohnen SE, you can compare the effects of market volatilities on Brinker International and Deutsche Wohnen 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 Brinker International with a short position of Deutsche Wohnen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brinker International and Deutsche Wohnen.
Diversification Opportunities for Brinker International and Deutsche Wohnen
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Brinker and Deutsche is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Brinker International and Deutsche Wohnen SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Deutsche Wohnen SE and Brinker International 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 Brinker International are associated (or correlated) with Deutsche Wohnen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Deutsche Wohnen SE has no effect on the direction of Brinker International i.e., Brinker International and Deutsche Wohnen go up and down completely randomly.
Pair Corralation between Brinker International and Deutsche Wohnen
Assuming the 90 days horizon Brinker International is expected to generate 1.23 times more return on investment than Deutsche Wohnen. However, Brinker International is 1.23 times more volatile than Deutsche Wohnen SE. It trades about 0.12 of its potential returns per unit of risk. Deutsche Wohnen SE is currently generating about 0.02 per unit of risk. If you would invest 2,980 in Brinker International on September 23, 2024 and sell it today you would earn a total of 9,720 from holding Brinker International or generate 326.17% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Brinker International vs. Deutsche Wohnen SE
Performance |
Timeline |
Brinker International |
Deutsche Wohnen SE |
Brinker International and Deutsche Wohnen Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Brinker International and Deutsche Wohnen
The main advantage of trading using opposite Brinker International and Deutsche Wohnen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brinker International position performs unexpectedly, Deutsche Wohnen 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 Deutsche Wohnen will offset losses from the drop in Deutsche Wohnen's long position.Brinker International vs. BORR DRILLING NEW | Brinker International vs. American Homes 4 | Brinker International vs. LGI Homes | Brinker International vs. Aedas Homes SA |
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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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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