Correlation Between Dave Busters and TLSAU

Can any of the company-specific risk be diversified away by investing in both Dave Busters and TLSAU 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 TLSAU 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 TLSAU 3125 07 APR 25, you can compare the effects of market volatilities on Dave Busters and TLSAU 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 TLSAU. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dave Busters and TLSAU.

Diversification Opportunities for Dave Busters and TLSAU

-0.81

Correlation Coefficient

Dave Busters  TLSAU

Pay attention - limited upside

The 3 months correlation between Dave and TLSAU is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Dave Busters Entertainment and TLSAU 3125 07 APR 25 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TLSAU 3125 07 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 TLSAU. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TLSAU 3125 07 has no effect on the direction of Dave Busters i.e., Dave Busters and TLSAU go up and down completely randomly.

Pair Corralation between Dave Busters and TLSAU

Given the investment horizon of 90 days Dave Busters Entertainment is expected to under-perform the TLSAU. In addition to that, Dave Busters is 9.45 times more volatile than TLSAU 3125 07 APR 25. It trades about -0.14 of its total potential returns per unit of risk. TLSAU 3125 07 APR 25 is currently generating about -0.22 per unit of volatility. If you would invest  9,962  in TLSAU 3125 07 APR 25 on December 30, 2024 and sell it today you would lose (128.00) from holding TLSAU 3125 07 APR 25 or give up 1.28% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	20.97%
Values	Daily Returns

Dave Busters Entertainment  vs.  TLSAU 3125 07 APR 25

Dave Busters Enterta

Risk-Adjusted Performance

Very Weak

Over the last 90 days Dave Busters Entertainment has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

TLSAU 3125 07

Risk-Adjusted Performance

Very Weak

Over the last 90 days TLSAU 3125 07 APR 25 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, TLSAU is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Dave Busters and TLSAU

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

The idea behind Dave Busters Entertainment and TLSAU 3125 07 APR 25 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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.