Correlation Between Dave Busters and CEOTRONICS

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

Diversification Opportunities for Dave Busters and CEOTRONICS

-0.17

Correlation Coefficient

Dave Busters  CEOTRONICS

Good diversification

The 3 months correlation between Dave and CEOTRONICS is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Dave Busters Entertainment and CEOTRONICS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CEOTRONICS 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 CEOTRONICS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CEOTRONICS has no effect on the direction of Dave Busters i.e., Dave Busters and CEOTRONICS go up and down completely randomly.

Pair Corralation between Dave Busters and CEOTRONICS

Assuming the 90 days horizon Dave Busters Entertainment is expected to generate 0.96 times more return on investment than CEOTRONICS. However, Dave Busters Entertainment is 1.04 times less risky than CEOTRONICS. It trades about 0.16 of its potential returns per unit of risk. CEOTRONICS is currently generating about -0.03 per unit of risk. If you would invest  1,780  in Dave Busters Entertainment on April 23, 2025 and sell it today you would earn a total of  760.00  from holding Dave Busters Entertainment or generate 42.7% return on investment over 90 days.

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

Dave Busters Entertainment  vs.  CEOTRONICS

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 12 (%) 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.

CEOTRONICS

Risk-Adjusted Performance

Very Weak

Over the last 90 days CEOTRONICS has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with Dave Busters and CEOTRONICS

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

The idea behind Dave Busters Entertainment and CEOTRONICS 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.

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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.