Correlation Between Black Diamond and Dominos Pizza

Can any of the company-specific risk be diversified away by investing in both Black Diamond and Dominos Pizza 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 Black Diamond and Dominos Pizza into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Black Diamond Group and Dominos Pizza Group, you can compare the effects of market volatilities on Black Diamond and Dominos Pizza 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 Black Diamond with a short position of Dominos Pizza. Check out your portfolio center. Please also check ongoing floating volatility patterns of Black Diamond and Dominos Pizza.

Diversification Opportunities for Black Diamond and Dominos Pizza

-0.52

Correlation Coefficient

Black Diamond  Dominos Pizza

Excellent diversification

The 3 months correlation between Black and Dominos is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Black Diamond Group and Dominos Pizza Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dominos Pizza Group and Black Diamond 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 Black Diamond Group are associated (or correlated) with Dominos Pizza. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dominos Pizza Group has no effect on the direction of Black Diamond i.e., Black Diamond and Dominos Pizza go up and down completely randomly.

Pair Corralation between Black Diamond and Dominos Pizza

Assuming the 90 days horizon Black Diamond Group is expected to generate 1.18 times more return on investment than Dominos Pizza. However, Black Diamond is 1.18 times more volatile than Dominos Pizza Group. It trades about 0.27 of its potential returns per unit of risk. Dominos Pizza Group is currently generating about -0.15 per unit of risk. If you would invest  673.00  in Black Diamond Group on May 6, 2025 and sell it today you would earn a total of  212.00  from holding Black Diamond Group or generate 31.5% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	67.74%
Values	Daily Returns

Black Diamond Group  vs.  Dominos Pizza Group

Black Diamond Group

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Black Diamond Group are ranked lower than 21 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile primary indicators, Black Diamond reported solid returns over the last few months and may actually be approaching a breakup point.

Dominos Pizza Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days Dominos Pizza Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in September 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Black Diamond and Dominos Pizza

The main advantage of trading using opposite Black Diamond and Dominos Pizza positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Black Diamond position performs unexpectedly, Dominos Pizza 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 Dominos Pizza will offset losses from the drop in Dominos Pizza's long position.

The idea behind Black Diamond Group and Dominos Pizza Group 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.

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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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..