Correlation Between Fox Corp and Dave Busters
Can any of the company-specific risk be diversified away by investing in both Fox Corp 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 Fox Corp and Dave Busters into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fox Corp Class and Dave Busters Entertainment, you can compare the effects of market volatilities on Fox Corp 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 Fox Corp with a short position of Dave Busters. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fox Corp and Dave Busters.
Diversification Opportunities for Fox Corp and Dave Busters
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fox and Dave is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Fox Corp Class 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 Fox Corp 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 Fox Corp Class 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 Fox Corp i.e., Fox Corp and Dave Busters go up and down completely randomly.
Pair Corralation between Fox Corp and Dave Busters
Considering the 90-day investment horizon Fox Corp Class is expected to generate 0.45 times more return on investment than Dave Busters. However, Fox Corp Class is 2.24 times less risky than Dave Busters. It trades about 0.08 of its potential returns per unit of risk. Dave Busters Entertainment is currently generating about -0.04 per unit of risk. If you would invest 3,034 in Fox Corp Class on January 9, 2025 and sell it today you would earn a total of 1,738 from holding Fox Corp Class or generate 57.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fox Corp Class vs. Dave Busters Entertainment
Performance |
| Timeline |
| Fox Corp Class |
| Dave Busters Enterta |
Fox Corp and Dave Busters Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fox Corp and Dave Busters
The main advantage of trading using opposite Fox Corp and Dave Busters positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fox Corp 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.| Fox Corp vs. News Corp A | Fox Corp vs. News Corp B | Fox Corp vs. Paramount Global Class | Fox Corp vs. Liberty Media |
| Dave Busters vs. Imax Corp | Dave Busters vs. Marcus | Dave Busters vs. AMC Networks | Dave Busters vs. Cinemark Holdings |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |