Correlation Between Integral and Dave Busters
Can any of the company-specific risk be diversified away by investing in both Integral 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 Integral and Dave Busters into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Integral Ad Science and Dave Busters Entertainment, you can compare the effects of market volatilities on Integral 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 Integral with a short position of Dave Busters. Check out your portfolio center. Please also check ongoing floating volatility patterns of Integral and Dave Busters.
Diversification Opportunities for Integral and Dave Busters
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Integral and Dave is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Integral Ad Science 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 Integral 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 Integral Ad Science 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 Integral i.e., Integral and Dave Busters go up and down completely randomly.
Pair Corralation between Integral and Dave Busters
Considering the 90-day investment horizon Integral Ad Science is expected to generate 1.2 times more return on investment than Dave Busters. However, Integral is 1.2 times more volatile than Dave Busters Entertainment. It trades about 0.02 of its potential returns per unit of risk. Dave Busters Entertainment is currently generating about -0.01 per unit of risk. If you would invest 1,099 in Integral Ad Science on August 27, 2024 and sell it today you would earn a total of 9.00 from holding Integral Ad Science or generate 0.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Integral Ad Science vs. Dave Busters Entertainment
Performance |
| Timeline |
| Integral Ad Science |
| Dave Busters Enterta |
Integral and Dave Busters Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Integral and Dave Busters
The main advantage of trading using opposite Integral and Dave Busters positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Integral 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.| Integral vs. Mirriad Advertising plc | Integral vs. INEO Tech Corp | Integral vs. Innovid Corp | Integral vs. Townsquare 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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