Correlation Between Marine Bancorp and Dave Busters
Can any of the company-specific risk be diversified away by investing in both Marine Bancorp 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 Marine Bancorp and Dave Busters into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Marine Bancorp of and Dave Busters Entertainment, you can compare the effects of market volatilities on Marine Bancorp 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 Marine Bancorp with a short position of Dave Busters. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marine Bancorp and Dave Busters.
Diversification Opportunities for Marine Bancorp and Dave Busters
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Marine and Dave is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Marine Bancorp of 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 Marine Bancorp 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 Marine Bancorp of 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 Marine Bancorp i.e., Marine Bancorp and Dave Busters go up and down completely randomly.
Pair Corralation between Marine Bancorp and Dave Busters
Given the investment horizon of 90 days Marine Bancorp of is expected to generate 0.08 times more return on investment than Dave Busters. However, Marine Bancorp of is 12.64 times less risky than Dave Busters. It trades about 0.12 of its potential returns per unit of risk. Dave Busters Entertainment is currently generating about -0.15 per unit of risk. If you would invest 3,960 in Marine Bancorp of on October 25, 2024 and sell it today you would earn a total of 25.00 from holding Marine Bancorp of or generate 0.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Marine Bancorp of vs. Dave Busters Entertainment
Performance |
| Timeline |
| Marine Bancorp |
| Dave Busters Enterta |
Marine Bancorp and Dave Busters Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marine Bancorp and Dave Busters
The main advantage of trading using opposite Marine Bancorp and Dave Busters positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marine Bancorp 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.| Marine Bancorp vs. Naked Wines plc | Marine Bancorp vs. Delta Air Lines | Marine Bancorp vs. Vodka Brands Corp | Marine Bancorp vs. Constellation Brands Class |
| 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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