Correlation Between Dave Busters and United
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By analyzing existing cross correlation between Dave Busters Entertainment and United States Cellular, you can compare the effects of market volatilities on Dave Busters and United 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 United. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dave Busters and United.
Diversification Opportunities for Dave Busters and United
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Dave and United is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Dave Busters Entertainment and United States Cellular in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United States Cellular 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 United. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United States Cellular has no effect on the direction of Dave Busters i.e., Dave Busters and United go up and down completely randomly.
Pair Corralation between Dave Busters and United
Given the investment horizon of 90 days Dave Busters Entertainment is expected to generate 1.53 times more return on investment than United. However, Dave Busters is 1.53 times more volatile than United States Cellular. It trades about 0.04 of its potential returns per unit of risk. United States Cellular is currently generating about -0.19 per unit of risk. If you would invest 3,856 in Dave Busters Entertainment on September 2, 2024 and sell it today you would earn a total of 76.00 from holding Dave Busters Entertainment or generate 1.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.48% |
| Values | Daily Returns |
Dave Busters Entertainment vs. United States Cellular
Performance |
| Timeline |
| Dave Busters Enterta |
| United States Cellular |
Dave Busters and United Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dave Busters and United
The main advantage of trading using opposite Dave Busters and United positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dave Busters position performs unexpectedly, United 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 United will offset losses from the drop in United's long position.The idea behind Dave Busters Entertainment and United States Cellular pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| United vs. National CineMedia | United vs. Playtika Holding Corp | United vs. Dolphin Entertainment | United vs. Dave Busters Entertainment |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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