Correlation Between Dave Busters and BANK HANDLOWY
Can any of the company-specific risk be diversified away by investing in both Dave Busters and BANK HANDLOWY 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 Dave Busters and BANK HANDLOWY into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dave Busters Entertainment and BANK HANDLOWY, you can compare the effects of market volatilities on Dave Busters and BANK HANDLOWY 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 Dave Busters with a short position of BANK HANDLOWY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dave Busters and BANK HANDLOWY.
Diversification Opportunities for Dave Busters and BANK HANDLOWY
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Dave and BANK is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Dave Busters Entertainment and BANK HANDLOWY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BANK HANDLOWY and Dave Busters 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 Dave Busters Entertainment are associated (or correlated) with BANK HANDLOWY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BANK HANDLOWY has no effect on the direction of Dave Busters i.e., Dave Busters and BANK HANDLOWY go up and down completely randomly.
Pair Corralation between Dave Busters and BANK HANDLOWY
Assuming the 90 days horizon Dave Busters Entertainment is expected to under-perform the BANK HANDLOWY. But the stock apears to be less risky and, when comparing its historical volatility, Dave Busters Entertainment is 1.27 times less risky than BANK HANDLOWY. The stock trades about 0.0 of its potential returns per unit of risk. The BANK HANDLOWY is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1,208 in BANK HANDLOWY on September 14, 2024 and sell it today you would earn a total of 947.00 from holding BANK HANDLOWY or generate 78.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.64% |
| Values | Daily Returns |
Dave Busters Entertainment vs. BANK HANDLOWY
Performance |
| Timeline |
| Dave Busters Enterta |
| BANK HANDLOWY |
Dave Busters and BANK HANDLOWY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dave Busters and BANK HANDLOWY
The main advantage of trading using opposite Dave Busters and BANK HANDLOWY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dave Busters position performs unexpectedly, BANK HANDLOWY 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 BANK HANDLOWY will offset losses from the drop in BANK HANDLOWY's long position.| Dave Busters vs. Starbucks | Dave Busters vs. Superior Plus Corp | Dave Busters vs. SIVERS SEMICONDUCTORS AB | Dave Busters vs. NorAm Drilling AS |
| BANK HANDLOWY vs. American Public Education | BANK HANDLOWY vs. Dave Busters Entertainment | BANK HANDLOWY vs. Grand Canyon Education | BANK HANDLOWY vs. EEDUCATION ALBERT 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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