Correlation Between Dave Busters and Kaltura
Can any of the company-specific risk be diversified away by investing in both Dave Busters and Kaltura 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 Kaltura 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 Kaltura, you can compare the effects of market volatilities on Dave Busters and Kaltura 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 Kaltura. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dave Busters and Kaltura.
Diversification Opportunities for Dave Busters and Kaltura
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Dave and Kaltura is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Dave Busters Entertainment and Kaltura in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kaltura 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 Kaltura. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kaltura has no effect on the direction of Dave Busters i.e., Dave Busters and Kaltura go up and down completely randomly.
Pair Corralation between Dave Busters and Kaltura
Given the investment horizon of 90 days Dave Busters is expected to generate 7.69 times less return on investment than Kaltura. But when comparing it to its historical volatility, Dave Busters Entertainment is 1.46 times less risky than Kaltura. It trades about 0.1 of its potential returns per unit of risk. Kaltura is currently generating about 0.5 of returns per unit of risk over similar time horizon. If you would invest 127.00 in Kaltura on September 1, 2024 and sell it today you would earn a total of 95.00 from holding Kaltura or generate 74.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dave Busters Entertainment vs. Kaltura
Performance |
| Timeline |
| Dave Busters Enterta |
| Kaltura |
Dave Busters and Kaltura Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dave Busters and Kaltura
The main advantage of trading using opposite Dave Busters and Kaltura positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dave Busters position performs unexpectedly, Kaltura 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 Kaltura will offset losses from the drop in Kaltura's long position.| Dave Busters vs. The Wendys Co | Dave Busters vs. Shake Shack | Dave Busters vs. Papa Johns International | Dave Busters vs. Darden Restaurants |
| Kaltura vs. Evertec | Kaltura vs. Consensus Cloud Solutions | Kaltura vs. Global Blue Group | Kaltura vs. Lesaka Technologies |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |