Correlation Between Funko and Just Energy

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

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

Diversification Opportunities for Funko and Just Energy

0.0

Correlation Coefficient

Funko  Just Energy

Pay attention - limited upside

The 3 months correlation between Funko and Just is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Funko Inc and Just Energy Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Just Energy Group 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 Just Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Just Energy Group has no effect on the direction of Funko i.e., Funko and Just Energy go up and down completely randomly.

Pair Corralation between Funko and Just Energy

If you would invest  938.00  in Funko Inc on September 30, 2024 and sell it today you would earn a total of  386.00  from holding Funko Inc or generate 41.15% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Funko Inc  vs.  Just Energy Group

Funko Inc

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Funko Inc are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating forward-looking signals, Funko may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Just Energy Group

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Just Energy Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, Just Energy is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Funko and Just Energy

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

The idea behind Funko Inc and Just Energy Group 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 Commodity Directory module to find actively traded commodities issued by global exchanges.