Correlation Between Yum China and Dave Busters
Can any of the company-specific risk be diversified away by investing in both Yum China and Dave Busters 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 Yum China and Dave Busters into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Yum China Holdings and Dave Busters Entertainment, you can compare the effects of market volatilities on Yum China and Dave Busters 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 Yum China with a short position of Dave Busters. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yum China and Dave Busters.
Diversification Opportunities for Yum China and Dave Busters
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Yum and Dave is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Yum China Holdings and Dave Busters Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dave Busters Enterta and Yum China 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 Yum China Holdings are associated (or correlated) with Dave Busters. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dave Busters Enterta has no effect on the direction of Yum China i.e., Yum China and Dave Busters go up and down completely randomly.
Pair Corralation between Yum China and Dave Busters
Assuming the 90 days horizon Yum China Holdings is expected to generate 0.81 times more return on investment than Dave Busters. However, Yum China Holdings is 1.24 times less risky than Dave Busters. It trades about 0.12 of its potential returns per unit of risk. Dave Busters Entertainment is currently generating about -0.04 per unit of risk. If you would invest 4,129 in Yum China Holdings on August 28, 2024 and sell it today you would earn a total of 287.00 from holding Yum China Holdings or generate 6.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Yum China Holdings vs. Dave Busters Entertainment
Performance |
| Timeline |
| Yum China Holdings |
| Dave Busters Enterta |
Yum China and Dave Busters Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yum China and Dave Busters
The main advantage of trading using opposite Yum China and Dave Busters positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yum China position performs unexpectedly, Dave Busters 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 Dave Busters will offset losses from the drop in Dave Busters' long position.| Yum China vs. Jupiter Fund Management | Yum China vs. Ross Stores | Yum China vs. BURLINGTON STORES | Yum China vs. Q2M Managementberatung AG |
| Dave Busters vs. Superior Plus Corp | Dave Busters vs. NMI Holdings | Dave Busters vs. Origin Agritech | Dave Busters vs. SIVERS SEMICONDUCTORS AB |
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.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |