Correlation Between Dave Busters and Duluth Holdings
Can any of the company-specific risk be diversified away by investing in both Dave Busters and Duluth Holdings 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 Duluth Holdings 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 Duluth Holdings, you can compare the effects of market volatilities on Dave Busters and Duluth Holdings 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 Duluth Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dave Busters and Duluth Holdings.
Diversification Opportunities for Dave Busters and Duluth Holdings
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Dave and Duluth is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Dave Busters Entertainment and Duluth Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Duluth Holdings 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 Duluth Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Duluth Holdings has no effect on the direction of Dave Busters i.e., Dave Busters and Duluth Holdings go up and down completely randomly.
Pair Corralation between Dave Busters and Duluth Holdings
Given the investment horizon of 90 days Dave Busters Entertainment is expected to under-perform the Duluth Holdings. In addition to that, Dave Busters is 1.08 times more volatile than Duluth Holdings. It trades about -0.05 of its total potential returns per unit of risk. Duluth Holdings is currently generating about 0.02 per unit of volatility. If you would invest 376.00 in Duluth Holdings on September 1, 2024 and sell it today you would earn a total of 7.00 from holding Duluth Holdings or generate 1.86% 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. Duluth Holdings
Performance |
| Timeline |
| Dave Busters Enterta |
| Duluth Holdings |
Dave Busters and Duluth Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dave Busters and Duluth Holdings
The main advantage of trading using opposite Dave Busters and Duluth Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dave Busters position performs unexpectedly, Duluth Holdings 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 Duluth Holdings will offset losses from the drop in Duluth Holdings' long position.| Dave Busters vs. The Wendys Co | Dave Busters vs. Shake Shack | Dave Busters vs. Papa Johns International | Dave Busters vs. Darden Restaurants |
| Duluth Holdings vs. Capri Holdings | Duluth Holdings vs. Movado Group | Duluth Holdings vs. Tapestry | Duluth Holdings vs. Brilliant Earth Group |
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 Stocks Directory module to find actively traded stocks across global markets.
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