Correlation Between Dave Busters and Oatly Group
Can any of the company-specific risk be diversified away by investing in both Dave Busters and Oatly Group 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 Oatly Group 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 Oatly Group AB, you can compare the effects of market volatilities on Dave Busters and Oatly Group 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 Oatly Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dave Busters and Oatly Group.
Diversification Opportunities for Dave Busters and Oatly Group
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Dave and Oatly is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Dave Busters Entertainment and Oatly Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oatly Group AB 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 Oatly Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oatly Group AB has no effect on the direction of Dave Busters i.e., Dave Busters and Oatly Group go up and down completely randomly.
Pair Corralation between Dave Busters and Oatly Group
Given the investment horizon of 90 days Dave Busters Entertainment is expected to generate 0.77 times more return on investment than Oatly Group. However, Dave Busters Entertainment is 1.3 times less risky than Oatly Group. It trades about 0.13 of its potential returns per unit of risk. Oatly Group AB is currently generating about -0.05 per unit of risk. If you would invest 3,045 in Dave Busters Entertainment on September 3, 2024 and sell it today you would earn a total of 887.00 from holding Dave Busters Entertainment or generate 29.13% 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. Oatly Group AB
Performance |
| Timeline |
| Dave Busters Enterta |
| Oatly Group AB |
Dave Busters and Oatly Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dave Busters and Oatly Group
The main advantage of trading using opposite Dave Busters and Oatly Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dave Busters position performs unexpectedly, Oatly Group 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 Oatly Group will offset losses from the drop in Oatly Group's long position.| Dave Busters vs. Marcus | Dave Busters vs. News Corp B | Dave Busters vs. Warner Music Group | Dave Busters vs. Manchester United |
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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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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