Correlation Between Talanx AG and Dave Busters
Can any of the company-specific risk be diversified away by investing in both Talanx AG 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 Talanx AG and Dave Busters into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Talanx AG and Dave Busters Entertainment, you can compare the effects of market volatilities on Talanx AG 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 Talanx AG with a short position of Dave Busters. Check out your portfolio center. Please also check ongoing floating volatility patterns of Talanx AG and Dave Busters.
Diversification Opportunities for Talanx AG and Dave Busters
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Talanx and Dave is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Talanx AG 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 Talanx AG 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 Talanx AG 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 Talanx AG i.e., Talanx AG and Dave Busters go up and down completely randomly.
Pair Corralation between Talanx AG and Dave Busters
Assuming the 90 days horizon Talanx AG is expected to generate 0.35 times more return on investment than Dave Busters. However, Talanx AG is 2.89 times less risky than Dave Busters. It trades about 0.41 of its potential returns per unit of risk. Dave Busters Entertainment is currently generating about 0.03 per unit of risk. If you would invest 7,080 in Talanx AG on September 1, 2024 and sell it today you would earn a total of 855.00 from holding Talanx AG or generate 12.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Talanx AG vs. Dave Busters Entertainment
Performance |
| Timeline |
| Talanx AG |
| Dave Busters Enterta |
Talanx AG and Dave Busters Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Talanx AG and Dave Busters
The main advantage of trading using opposite Talanx AG and Dave Busters positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Talanx AG 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.| Talanx AG vs. Retail Estates NV | Talanx AG vs. COMMERCIAL VEHICLE | Talanx AG vs. Geely Automobile Holdings | Talanx AG vs. Commercial Vehicle Group |
| Dave Busters vs. CVS Health | Dave Busters vs. Bumrungrad Hospital Public | Dave Busters vs. Gamma Communications plc | Dave Busters vs. United Rentals |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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