Correlation Between Kaufman Broad and Dave Busters

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

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

Diversification Opportunities for Kaufman Broad and Dave Busters

0.17

Correlation Coefficient

Kaufman Broad  Dave Busters

Average diversification

The 3 months correlation between Kaufman and Dave is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Kaufman Broad SA 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 Kaufman Broad 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 Kaufman Broad SA 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 Kaufman Broad i.e., Kaufman Broad and Dave Busters go up and down completely randomly.

Pair Corralation between Kaufman Broad and Dave Busters

Assuming the 90 days horizon Kaufman Broad is expected to generate 26.51 times less return on investment than Dave Busters. But when comparing it to its historical volatility, Kaufman Broad SA is 2.37 times less risky than Dave Busters. It trades about 0.02 of its potential returns per unit of risk. Dave Busters Entertainment is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest  1,700  in Dave Busters Entertainment on April 24, 2025 and sell it today you would earn a total of  860.00  from holding Dave Busters Entertainment or generate 50.59% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Kaufman Broad SA  vs.  Dave Busters Entertainment

Kaufman Broad SA

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Kaufman Broad SA are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Kaufman Broad is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Dave Busters Enterta

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Dave Busters Entertainment are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, Dave Busters reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Kaufman Broad and Dave Busters

The main advantage of trading using opposite Kaufman Broad and Dave Busters positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kaufman Broad 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 Kaufman Broad SA 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.