Correlation Between Dave Busters and TRIPCOM GROUP

Can any of the company-specific risk be diversified away by investing in both Dave Busters and TRIPCOM 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 TRIPCOM 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 TRIPCOM GROUP DL 00125, you can compare the effects of market volatilities on Dave Busters and TRIPCOM 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 TRIPCOM GROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dave Busters and TRIPCOM GROUP.

Diversification Opportunities for Dave Busters and TRIPCOM GROUP

-0.48

Correlation Coefficient

Dave Busters  TRIPCOM GROUP

Very good diversification

The 3 months correlation between Dave and TRIPCOM is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Dave Busters Entertainment and TRIPCOM GROUP DL 00125 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TRIPCOM GROUP DL 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 TRIPCOM GROUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TRIPCOM GROUP DL has no effect on the direction of Dave Busters i.e., Dave Busters and TRIPCOM GROUP go up and down completely randomly.

Pair Corralation between Dave Busters and TRIPCOM GROUP

Assuming the 90 days horizon Dave Busters Entertainment is expected to generate 1.37 times more return on investment than TRIPCOM GROUP. However, Dave Busters is 1.37 times more volatile than TRIPCOM GROUP DL 00125. It trades about 0.03 of its potential returns per unit of risk. TRIPCOM GROUP DL 00125 is currently generating about -0.06 per unit of risk. If you would invest  1,970  in Dave Busters Entertainment on May 15, 2025 and sell it today you would earn a total of  70.00  from holding Dave Busters Entertainment or generate 3.55% 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.  TRIPCOM GROUP DL 00125

Dave Busters Enterta

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Dave Busters Entertainment are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Dave Busters may actually be approaching a critical reversion point that can send shares even higher in September 2025.

TRIPCOM GROUP DL

Risk-Adjusted Performance

Weakest

Over the last 90 days TRIPCOM GROUP DL 00125 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unsteady performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with Dave Busters and TRIPCOM GROUP

The main advantage of trading using opposite Dave Busters and TRIPCOM GROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dave Busters position performs unexpectedly, TRIPCOM 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 TRIPCOM GROUP will offset losses from the drop in TRIPCOM GROUP's long position.

The idea behind Dave Busters Entertainment and TRIPCOM GROUP DL 00125 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.

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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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.