Correlation Between Dave Busters and Lendlease
Can any of the company-specific risk be diversified away by investing in both Dave Busters and Lendlease 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 Lendlease 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 Lendlease Group, you can compare the effects of market volatilities on Dave Busters and Lendlease 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 Lendlease. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dave Busters and Lendlease.
Diversification Opportunities for Dave Busters and Lendlease
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Dave and Lendlease is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Dave Busters Entertainment and Lendlease Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lendlease Group 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 Lendlease. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lendlease Group has no effect on the direction of Dave Busters i.e., Dave Busters and Lendlease go up and down completely randomly.
Pair Corralation between Dave Busters and Lendlease
Assuming the 90 days horizon Dave Busters Entertainment is expected to generate 1.43 times more return on investment than Lendlease. However, Dave Busters is 1.43 times more volatile than Lendlease Group. It trades about 0.02 of its potential returns per unit of risk. Lendlease Group is currently generating about 0.01 per unit of risk. If you would invest 3,263 in Dave Busters Entertainment on September 2, 2024 and sell it today you would earn a total of 277.00 from holding Dave Busters Entertainment or generate 8.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dave Busters Entertainment vs. Lendlease Group
Performance |
| Timeline |
| Dave Busters Enterta |
| Lendlease Group |
Dave Busters and Lendlease Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dave Busters and Lendlease
The main advantage of trading using opposite Dave Busters and Lendlease positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dave Busters position performs unexpectedly, Lendlease 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 Lendlease will offset losses from the drop in Lendlease's long position.| Dave Busters vs. Playa Hotels Resorts | Dave Busters vs. PLAYTECH | Dave Busters vs. Major Drilling Group | Dave Busters vs. ANTA SPORTS PRODUCT |
| Lendlease vs. FARO Technologies | Lendlease vs. Cass Information Systems | Lendlease vs. Hyrican Informationssysteme Aktiengesellschaft | Lendlease vs. Automatic Data Processing |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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