Correlation Between Dave Busters and GEELY AUTOMOBILE
Can any of the company-specific risk be diversified away by investing in both Dave Busters and GEELY AUTOMOBILE 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 GEELY AUTOMOBILE 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 GEELY AUTOMOBILE, you can compare the effects of market volatilities on Dave Busters and GEELY AUTOMOBILE 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 GEELY AUTOMOBILE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dave Busters and GEELY AUTOMOBILE.
Diversification Opportunities for Dave Busters and GEELY AUTOMOBILE
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Dave and GEELY is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Dave Busters Entertainment and GEELY AUTOMOBILE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GEELY AUTOMOBILE 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 GEELY AUTOMOBILE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GEELY AUTOMOBILE has no effect on the direction of Dave Busters i.e., Dave Busters and GEELY AUTOMOBILE go up and down completely randomly.
Pair Corralation between Dave Busters and GEELY AUTOMOBILE
Assuming the 90 days horizon Dave Busters Entertainment is expected to under-perform the GEELY AUTOMOBILE. In addition to that, Dave Busters is 2.35 times more volatile than GEELY AUTOMOBILE. It trades about -0.17 of its total potential returns per unit of risk. GEELY AUTOMOBILE is currently generating about 0.04 per unit of volatility. If you would invest 177.00 in GEELY AUTOMOBILE on November 7, 2024 and sell it today you would earn a total of 2.00 from holding GEELY AUTOMOBILE or generate 1.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dave Busters Entertainment vs. GEELY AUTOMOBILE
Performance |
| Timeline |
| Dave Busters Enterta |
| GEELY AUTOMOBILE |
Dave Busters and GEELY AUTOMOBILE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dave Busters and GEELY AUTOMOBILE
The main advantage of trading using opposite Dave Busters and GEELY AUTOMOBILE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dave Busters position performs unexpectedly, GEELY AUTOMOBILE 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 GEELY AUTOMOBILE will offset losses from the drop in GEELY AUTOMOBILE's long position.| Dave Busters vs. GOLD ROAD RES | Dave Busters vs. DFS Furniture PLC | Dave Busters vs. BROADPEAK SA EO | Dave Busters vs. Gold Road Resources |
| GEELY AUTOMOBILE vs. Automatic Data Processing | GEELY AUTOMOBILE vs. Northern Data AG | GEELY AUTOMOBILE vs. Firan Technology Group | GEELY AUTOMOBILE vs. Addtech 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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