Correlation Between Dave Busters and Academy Sports
Can any of the company-specific risk be diversified away by investing in both Dave Busters and Academy Sports 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 Academy Sports 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 Academy Sports Outdoors, you can compare the effects of market volatilities on Dave Busters and Academy Sports 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 Academy Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dave Busters and Academy Sports.
Diversification Opportunities for Dave Busters and Academy Sports
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Dave and Academy is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Dave Busters Entertainment and Academy Sports Outdoors in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Academy Sports Outdoors 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 Academy Sports. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Academy Sports Outdoors has no effect on the direction of Dave Busters i.e., Dave Busters and Academy Sports go up and down completely randomly.
Pair Corralation between Dave Busters and Academy Sports
Given the investment horizon of 90 days Dave Busters Entertainment is expected to generate 1.26 times more return on investment than Academy Sports. However, Dave Busters is 1.26 times more volatile than Academy Sports Outdoors. It trades about 0.02 of its potential returns per unit of risk. Academy Sports Outdoors is currently generating about 0.01 per unit of risk. If you would invest 3,837 in Dave Busters Entertainment on August 31, 2024 and sell it today you would earn a total of 95.00 from holding Dave Busters Entertainment or generate 2.48% 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. Academy Sports Outdoors
Performance |
| Timeline |
| Dave Busters Enterta |
| Academy Sports Outdoors |
Dave Busters and Academy Sports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dave Busters and Academy Sports
The main advantage of trading using opposite Dave Busters and Academy Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dave Busters position performs unexpectedly, Academy Sports 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 Academy Sports will offset losses from the drop in Academy Sports' long position.| Dave Busters vs. Imax Corp | Dave Busters vs. Marcus | Dave Busters vs. AMC Networks | Dave Busters vs. Cinemark Holdings |
| Academy Sports vs. Williams Sonoma | Academy Sports vs. AutoZone | Academy Sports vs. Ulta Beauty | Academy Sports vs. Best Buy Co |
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 Valuation module to check real value of public entities based on technical and fundamental data.
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