Correlation Between Dennys Corp and Black Mammoth

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

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

Diversification Opportunities for Dennys Corp and Black Mammoth

0.3

Correlation Coefficient

Dennys Corp  Black Mammoth

Weak diversification

The 3 months correlation between Dennys and Black is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Dennys Corp and Black Mammoth Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Black Mammoth Metals and Dennys Corp 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 Dennys Corp are associated (or correlated) with Black Mammoth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Black Mammoth Metals has no effect on the direction of Dennys Corp i.e., Dennys Corp and Black Mammoth go up and down completely randomly.

Pair Corralation between Dennys Corp and Black Mammoth

Given the investment horizon of 90 days Dennys Corp is expected to under-perform the Black Mammoth. In addition to that, Dennys Corp is 1.26 times more volatile than Black Mammoth Metals. It trades about 0.0 of its total potential returns per unit of risk. Black Mammoth Metals is currently generating about 0.11 per unit of volatility. If you would invest  119.00  in Black Mammoth Metals on May 5, 2025 and sell it today you would earn a total of  27.00  from holding Black Mammoth Metals or generate 22.69% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.44%
Values	Daily Returns

Dennys Corp  vs.  Black Mammoth Metals

Dennys Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Dennys Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Dennys Corp is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Black Mammoth Metals

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Black Mammoth Metals are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile fundamental indicators, Black Mammoth reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Dennys Corp and Black Mammoth

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

The idea behind Dennys Corp and Black Mammoth Metals 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.