Correlation Between Dave Busters and Getty Images
Can any of the company-specific risk be diversified away by investing in both Dave Busters and Getty Images 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 Getty Images 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 Getty Images Holdings, you can compare the effects of market volatilities on Dave Busters and Getty Images 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 Getty Images. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dave Busters and Getty Images.
Diversification Opportunities for Dave Busters and Getty Images
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Dave and Getty is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Dave Busters Entertainment and Getty Images Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Getty Images 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 Getty Images. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Getty Images Holdings has no effect on the direction of Dave Busters i.e., Dave Busters and Getty Images go up and down completely randomly.
Pair Corralation between Dave Busters and Getty Images
Given the investment horizon of 90 days Dave Busters Entertainment is expected to generate 0.74 times more return on investment than Getty Images. However, Dave Busters Entertainment is 1.35 times less risky than Getty Images. It trades about 0.02 of its potential returns per unit of risk. Getty Images Holdings is currently generating about -0.25 per unit of risk. If you would invest 3,407 in Dave Busters Entertainment on August 24, 2024 and sell it today you would earn a total of 3.00 from holding Dave Busters Entertainment or generate 0.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dave Busters Entertainment vs. Getty Images Holdings
Performance |
| Timeline |
| Dave Busters Enterta |
| Getty Images Holdings |
Dave Busters and Getty Images Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dave Busters and Getty Images
The main advantage of trading using opposite Dave Busters and Getty Images positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dave Busters position performs unexpectedly, Getty Images 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 Getty Images will offset losses from the drop in Getty Images' long position.| Dave Busters vs. Imax Corp | Dave Busters vs. Marcus | Dave Busters vs. AMC Networks | Dave Busters vs. Cinemark Holdings |
| Getty Images vs. Twilio Inc | Getty Images vs. Baidu Inc | Getty Images vs. Snap Inc | Getty Images vs. ANGI Homeservices |
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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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