Correlation Between Vivic Corp and Dave Busters

Can any of the company-specific risk be diversified away by investing in both Vivic Corp 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 Vivic Corp and Dave Busters into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Vivic Corp and Dave Busters Entertainment, you can compare the effects of market volatilities on Vivic Corp 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 Vivic Corp with a short position of Dave Busters. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vivic Corp and Dave Busters.

Diversification Opportunities for Vivic Corp and Dave Busters

-0.58

Correlation Coefficient

Vivic Corp  Dave Busters

Excellent diversification

The 3 months correlation between Vivic and Dave is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Vivic Corp 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 Vivic Corp 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 Vivic Corp 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 Vivic Corp i.e., Vivic Corp and Dave Busters go up and down completely randomly.

Pair Corralation between Vivic Corp and Dave Busters

Given the investment horizon of 90 days Vivic Corp is expected to generate 2.3 times more return on investment than Dave Busters. However, Vivic Corp is 2.3 times more volatile than Dave Busters Entertainment. It trades about 0.28 of its potential returns per unit of risk. Dave Busters Entertainment is currently generating about -0.14 per unit of risk. If you would invest  180.00  in Vivic Corp on October 22, 2024 and sell it today you would earn a total of  330.00  from holding Vivic Corp or generate 183.33% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	97.5%
Values	Daily Returns

Vivic Corp  vs.  Dave Busters Entertainment

Vivic Corp

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Vivic Corp are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, Vivic Corp exhibited solid returns over the last few months and may actually be approaching a breakup point.

Dave Busters Enterta

Risk-Adjusted Performance

0 of 100

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 February 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Vivic Corp and Dave Busters

The main advantage of trading using opposite Vivic Corp and Dave Busters positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vivic Corp 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.

The idea behind Vivic Corp and Dave Busters Entertainment 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.