Correlation Between ANTA Sports and Funko

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

By analyzing existing cross correlation between ANTA Sports Products and Funko Inc, you can compare the effects of market volatilities on ANTA Sports and Funko 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 ANTA Sports with a short position of Funko. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANTA Sports and Funko.

Diversification Opportunities for ANTA Sports and Funko

0.12

Correlation Coefficient

ANTA Sports  Funko

Average diversification

The 3 months correlation between ANTA and Funko is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding ANTA Sports Products and Funko Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Funko Inc and ANTA Sports 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 ANTA Sports Products are associated (or correlated) with Funko. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Funko Inc has no effect on the direction of ANTA Sports i.e., ANTA Sports and Funko go up and down completely randomly.

Pair Corralation between ANTA Sports and Funko

Assuming the 90 days horizon ANTA Sports is expected to generate 2.22 times less return on investment than Funko. In addition to that, ANTA Sports is 1.09 times more volatile than Funko Inc. It trades about 0.04 of its total potential returns per unit of risk. Funko Inc is currently generating about 0.11 per unit of volatility. If you would invest  970.00  in Funko Inc on October 8, 2024 and sell it today you would earn a total of  429.00  from holding Funko Inc or generate 44.23% return on investment over 90 days.

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

ANTA Sports Products  vs.  Funko Inc

ANTA Sports Products

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ANTA Sports Products 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 fundamental 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.

Funko Inc

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Funko Inc are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of very uncertain forward-looking signals, Funko displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with ANTA Sports and Funko

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

The idea behind ANTA Sports Products and Funko Inc 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.