Correlation Between Dave Busters and Marine Bancorp
Can any of the company-specific risk be diversified away by investing in both Dave Busters and Marine Bancorp 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 Marine Bancorp 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 Marine Bancorp of, you can compare the effects of market volatilities on Dave Busters and Marine Bancorp 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 Marine Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dave Busters and Marine Bancorp.
Diversification Opportunities for Dave Busters and Marine Bancorp
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Dave and Marine is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Dave Busters Entertainment and Marine Bancorp of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marine Bancorp 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 Marine Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marine Bancorp has no effect on the direction of Dave Busters i.e., Dave Busters and Marine Bancorp go up and down completely randomly.
Pair Corralation between Dave Busters and Marine Bancorp
Given the investment horizon of 90 days Dave Busters Entertainment is expected to under-perform the Marine Bancorp. In addition to that, Dave Busters is 12.64 times more volatile than Marine Bancorp of. It trades about -0.15 of its total potential returns per unit of risk. Marine Bancorp of is currently generating about 0.12 per unit of volatility. 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 |
Dave Busters Entertainment vs. Marine Bancorp of
Performance |
| Timeline |
| Dave Busters Enterta |
| Marine Bancorp |
Dave Busters and Marine Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dave Busters and Marine Bancorp
The main advantage of trading using opposite Dave Busters and Marine Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dave Busters position performs unexpectedly, Marine Bancorp 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 Marine Bancorp will offset losses from the drop in Marine Bancorp's long position.| Dave Busters vs. Imax Corp | Dave Busters vs. Marcus | Dave Busters vs. AMC Networks | Dave Busters vs. Cinemark Holdings |
| Marine Bancorp vs. Naked Wines plc | Marine Bancorp vs. Delta Air Lines | Marine Bancorp vs. Vodka Brands Corp | Marine Bancorp vs. Constellation Brands Class |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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