Correlation Between Funko and HWH International

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

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

Diversification Opportunities for Funko and HWH International

-0.64

Correlation Coefficient

Funko  HWH International

Excellent diversification

The 3 months correlation between Funko and HWH is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Funko Inc and HWH International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HWH International 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 HWH International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HWH International has no effect on the direction of Funko i.e., Funko and HWH International go up and down completely randomly.

Pair Corralation between Funko and HWH International

Given the investment horizon of 90 days Funko Inc is expected to generate 0.31 times more return on investment than HWH International. However, Funko Inc is 3.19 times less risky than HWH International. It trades about -0.32 of its potential returns per unit of risk. HWH International is currently generating about -0.17 per unit of risk. If you would invest  1,362  in Funko Inc on December 3, 2024 and sell it today you would lose (196.00) from holding Funko Inc or give up 14.39% of portfolio value over 90 days.

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

Funko Inc  vs.  HWH International

Funko Inc

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Funko Inc are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy forward-looking signals, Funko is not utilizing all of its potentials. The newest stock price disarray, may contribute to short-term losses for the investors.

HWH International

Risk-Adjusted Performance

Very Weak

Over the last 90 days HWH International has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in April 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with Funko and HWH International

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

The idea behind Funko Inc and HWH International 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.