Correlation Between Brinker International and SUPER HI

Can any of the company-specific risk be diversified away by investing in both Brinker International and SUPER HI 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 Brinker International and SUPER HI into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Brinker International and SUPER HI INTERNATIONAL, you can compare the effects of market volatilities on Brinker International and SUPER HI 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 SUPER HI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brinker International and SUPER HI.

Diversification Opportunities for Brinker International and SUPER HI

-0.06

Correlation Coefficient

Brinker International  SUPER HI

Good diversification

The 3 months correlation between Brinker and SUPER is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Brinker International and SUPER HI INTERNATIONAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SUPER HI INTERNATIONAL 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 SUPER HI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SUPER HI INTERNATIONAL has no effect on the direction of Brinker International i.e., Brinker International and SUPER HI go up and down completely randomly.

Pair Corralation between Brinker International and SUPER HI

Considering the 90-day investment horizon Brinker International is expected to generate 1.02 times more return on investment than SUPER HI. However, Brinker International is 1.02 times more volatile than SUPER HI INTERNATIONAL. It trades about 0.0 of its potential returns per unit of risk. SUPER HI INTERNATIONAL is currently generating about -0.28 per unit of risk. If you would invest  14,561  in Brinker International on January 11, 2025 and sell it today you would lose (284.00) from holding Brinker International or give up 1.95% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Brinker International  vs.  SUPER HI INTERNATIONAL

Brinker International

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Brinker International are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unfluctuating basic indicators, Brinker International may actually be approaching a critical reversion point that can send shares even higher in May 2025.

SUPER HI INTERNATIONAL

Risk-Adjusted Performance

Very Weak

Over the last 90 days SUPER HI INTERNATIONAL has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Stock's fundamental indicators remain quite persistent which may send shares a bit higher in May 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with Brinker International and SUPER HI

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

The idea behind Brinker International and SUPER HI INTERNATIONAL 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 Commodity Directory module to find actively traded commodities issued by global exchanges.