Correlation Between Dave Busters and CI GAMES
Can any of the company-specific risk be diversified away by investing in both Dave Busters and CI GAMES 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 CI GAMES 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 CI GAMES SA, you can compare the effects of market volatilities on Dave Busters and CI GAMES 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 CI GAMES. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dave Busters and CI GAMES.
Diversification Opportunities for Dave Busters and CI GAMES
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Dave and CI7 is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Dave Busters Entertainment and CI GAMES SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CI GAMES SA 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 CI GAMES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CI GAMES SA has no effect on the direction of Dave Busters i.e., Dave Busters and CI GAMES go up and down completely randomly.
Pair Corralation between Dave Busters and CI GAMES
Assuming the 90 days horizon Dave Busters Entertainment is expected to under-perform the CI GAMES. But the stock apears to be less risky and, when comparing its historical volatility, Dave Busters Entertainment is 1.14 times less risky than CI GAMES. The stock trades about -0.06 of its potential returns per unit of risk. The CI GAMES SA is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 33.00 in CI GAMES SA on September 12, 2024 and sell it today you would lose (1.00) from holding CI GAMES SA or give up 3.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dave Busters Entertainment vs. CI GAMES SA
Performance |
| Timeline |
| Dave Busters Enterta |
| CI GAMES SA |
Dave Busters and CI GAMES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dave Busters and CI GAMES
The main advantage of trading using opposite Dave Busters and CI GAMES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dave Busters position performs unexpectedly, CI GAMES 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 CI GAMES will offset losses from the drop in CI GAMES's long position.| Dave Busters vs. REVO INSURANCE SPA | Dave Busters vs. JSC Halyk bank | Dave Busters vs. The Hanover Insurance | Dave Busters vs. Jupiter Fund Management |
| CI GAMES vs. Haverty Furniture Companies | CI GAMES vs. ETFS Coffee ETC | CI GAMES vs. VARIOUS EATERIES LS | CI GAMES vs. North American Construction |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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