Correlation Between MOVIE GAMES and Dave Busters
Can any of the company-specific risk be diversified away by investing in both MOVIE GAMES 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 MOVIE GAMES and Dave Busters into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MOVIE GAMES SA and Dave Busters Entertainment, you can compare the effects of market volatilities on MOVIE GAMES 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 MOVIE GAMES with a short position of Dave Busters. Check out your portfolio center. Please also check ongoing floating volatility patterns of MOVIE GAMES and Dave Busters.
Diversification Opportunities for MOVIE GAMES and Dave Busters
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MOVIE and Dave is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding MOVIE GAMES SA 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 MOVIE GAMES 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 MOVIE GAMES SA 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 MOVIE GAMES i.e., MOVIE GAMES and Dave Busters go up and down completely randomly.
Pair Corralation between MOVIE GAMES and Dave Busters
Assuming the 90 days horizon MOVIE GAMES SA is expected to generate 1.3 times more return on investment than Dave Busters. However, MOVIE GAMES is 1.3 times more volatile than Dave Busters Entertainment. It trades about 0.01 of its potential returns per unit of risk. Dave Busters Entertainment is currently generating about 0.01 per unit of risk. If you would invest 417.00 in MOVIE GAMES SA on September 14, 2024 and sell it today you would lose (84.00) from holding MOVIE GAMES SA or give up 20.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MOVIE GAMES SA vs. Dave Busters Entertainment
Performance |
| Timeline |
| MOVIE GAMES SA |
| Dave Busters Enterta |
MOVIE GAMES and Dave Busters Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MOVIE GAMES and Dave Busters
The main advantage of trading using opposite MOVIE GAMES and Dave Busters positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MOVIE GAMES 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.| MOVIE GAMES vs. National Storage Affiliates | MOVIE GAMES vs. Datang International Power | MOVIE GAMES vs. Verizon Communications | MOVIE GAMES vs. Charter Communications |
| Dave Busters vs. Starbucks | Dave Busters vs. Superior Plus Corp | Dave Busters vs. SIVERS SEMICONDUCTORS AB | Dave Busters vs. NorAm Drilling AS |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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