Correlation Between Take-Two Interactive and Dave Busters
Can any of the company-specific risk be diversified away by investing in both Take-Two Interactive and Dave Busters 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 Take-Two Interactive and Dave Busters into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Take Two Interactive Software and Dave Busters Entertainment, you can compare the effects of market volatilities on Take-Two Interactive and Dave Busters 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 Take-Two Interactive with a short position of Dave Busters. Check out your portfolio center. Please also check ongoing floating volatility patterns of Take-Two Interactive and Dave Busters.
Diversification Opportunities for Take-Two Interactive and Dave Busters
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Take-Two and Dave is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Take Two Interactive Software and Dave Busters Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dave Busters Enterta and Take-Two Interactive 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 Take Two Interactive Software are associated (or correlated) with Dave Busters. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dave Busters Enterta has no effect on the direction of Take-Two Interactive i.e., Take-Two Interactive and Dave Busters go up and down completely randomly.
Pair Corralation between Take-Two Interactive and Dave Busters
Assuming the 90 days horizon Take Two Interactive Software is expected to generate 0.42 times more return on investment than Dave Busters. However, Take Two Interactive Software is 2.39 times less risky than Dave Busters. It trades about -0.03 of its potential returns per unit of risk. Dave Busters Entertainment is currently generating about -0.17 per unit of risk. If you would invest 18,208 in Take Two Interactive Software on November 7, 2024 and sell it today you would lose (210.00) from holding Take Two Interactive Software or give up 1.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 91.3% |
| Values | Daily Returns |
Take Two Interactive Software vs. Dave Busters Entertainment
Performance |
| Timeline |
| Take Two Interactive |
| Dave Busters Enterta |
Take-Two Interactive and Dave Busters Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Take-Two Interactive and Dave Busters
The main advantage of trading using opposite Take-Two Interactive and Dave Busters positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Take-Two Interactive position performs unexpectedly, Dave Busters 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 Dave Busters will offset losses from the drop in Dave Busters' long position.| Take-Two Interactive vs. CITY OFFICE REIT | Take-Two Interactive vs. GAMING FAC SA | Take-Two Interactive vs. VIRGIN WINES UK | Take-Two Interactive vs. OFFICE DEPOT |
| Dave Busters vs. GOLD ROAD RES | Dave Busters vs. DFS Furniture PLC | Dave Busters vs. BROADPEAK SA EO | Dave Busters vs. Gold Road Resources |
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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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