Correlation Between Funko and LandBridge Company

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

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

Diversification Opportunities for Funko and LandBridge Company

0.18

Correlation Coefficient

Funko  LandBridge Company

Average diversification

The 3 months correlation between Funko and LandBridge is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Funko Inc and LandBridge Company LLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LandBridge Company 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 LandBridge Company. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LandBridge Company has no effect on the direction of Funko i.e., Funko and LandBridge Company go up and down completely randomly.

Pair Corralation between Funko and LandBridge Company

Given the investment horizon of 90 days Funko Inc is expected to generate 0.52 times more return on investment than LandBridge Company. However, Funko Inc is 1.92 times less risky than LandBridge Company. It trades about 0.0 of its potential returns per unit of risk. LandBridge Company LLC is currently generating about -0.02 per unit of risk. If you would invest  1,182  in Funko Inc on December 4, 2024 and sell it today you would lose (16.00) from holding Funko Inc or give up 1.35% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.33%
Values	Daily Returns

Funko Inc  vs.  LandBridge Company LLC

Funko Inc

Risk-Adjusted Performance

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 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.

LandBridge Company

Risk-Adjusted Performance

Very Weak

Over the last 90 days LandBridge Company LLC has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong fundamental drivers, LandBridge Company is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Funko and LandBridge Company

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

The idea behind Funko Inc and LandBridge Company LLC 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.