Correlation Between Funko and Hasbro

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

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

Diversification Opportunities for Funko and Hasbro

-0.35

Correlation Coefficient

Funko  Hasbro

Very good diversification

The 3 months correlation between Funko and Hasbro is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Funko Inc and Hasbro Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hasbro Inc and Funko 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 Funko Inc are associated (or correlated) with Hasbro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hasbro Inc has no effect on the direction of Funko i.e., Funko and Hasbro go up and down completely randomly.

Pair Corralation between Funko and Hasbro

Given the investment horizon of 90 days Funko Inc is expected to under-perform the Hasbro. In addition to that, Funko is 1.55 times more volatile than Hasbro Inc. It trades about -0.29 of its total potential returns per unit of risk. Hasbro Inc is currently generating about 0.08 per unit of volatility. If you would invest  5,609  in Hasbro Inc on December 27, 2024 and sell it today you would earn a total of  527.00  from holding Hasbro Inc or generate 9.4% return on investment over 90 days.

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

Funko Inc  vs.  Hasbro Inc

Funko Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Funko Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's forward-looking signals remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Hasbro Inc

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Hasbro Inc are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Hasbro may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Funko and Hasbro

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

The idea behind Funko Inc and Hasbro 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.