Correlation Between Dominos Pizza and Piaggio C

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

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

Diversification Opportunities for Dominos Pizza and Piaggio C

0.75

Correlation Coefficient

Dominos Pizza  Piaggio C

Poor diversification

The 3 months correlation between Dominos and Piaggio is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Dominos Pizza Group and Piaggio C SpA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Piaggio C SpA and Dominos Pizza 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 Dominos Pizza Group are associated (or correlated) with Piaggio C. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Piaggio C SpA has no effect on the direction of Dominos Pizza i.e., Dominos Pizza and Piaggio C go up and down completely randomly.

Pair Corralation between Dominos Pizza and Piaggio C

Assuming the 90 days horizon Dominos Pizza Group is expected to under-perform the Piaggio C. But the pink sheet apears to be less risky and, when comparing its historical volatility, Dominos Pizza Group is 1.56 times less risky than Piaggio C. The pink sheet trades about -0.24 of its potential returns per unit of risk. The Piaggio C SpA is currently generating about -0.11 of returns per unit of risk over similar time horizon. If you would invest  240.00  in Piaggio C SpA on September 12, 2025 and sell it today you would lose (22.00) from holding Piaggio C SpA or give up 9.17% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	97.67%
Values	Daily Returns

Dominos Pizza Group  vs.  Piaggio C SpA

Dominos Pizza Group

Risk-Adjusted Performance

Weakest

Over the last 90 days Dominos Pizza Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in January 2026. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Piaggio C SpA

Risk-Adjusted Performance

Weakest

Over the last 90 days Piaggio C SpA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's technical and fundamental indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with Dominos Pizza and Piaggio C

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

The idea behind Dominos Pizza Group and Piaggio C SpA 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.

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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.