Correlation Between Funko and Sacks Parente

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

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

Diversification Opportunities for Funko and Sacks Parente

0.24

Correlation Coefficient

Funko  Sacks Parente

Modest diversification

The 3 months correlation between Funko and Sacks is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Funko Inc and Sacks Parente Golf, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sacks Parente Golf, 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 Sacks Parente. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sacks Parente Golf, has no effect on the direction of Funko i.e., Funko and Sacks Parente go up and down completely randomly.

Pair Corralation between Funko and Sacks Parente

Given the investment horizon of 90 days Funko Inc is expected to generate 0.34 times more return on investment than Sacks Parente. However, Funko Inc is 2.98 times less risky than Sacks Parente. It trades about 0.02 of its potential returns per unit of risk. Sacks Parente Golf, is currently generating about -0.07 per unit of risk. If you would invest  1,129  in Funko Inc on September 12, 2024 and sell it today you would earn a total of  21.00  from holding Funko Inc or generate 1.86% return on investment over 90 days.

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

Funko Inc  vs.  Sacks Parente Golf,

Funko Inc

Risk-Adjusted Performance

1 of 100

Modest

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.

Sacks Parente Golf,

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Sacks Parente Golf, has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's technical and fundamental indicators remain rather sound which may send shares a bit higher in January 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with Funko and Sacks Parente

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

The idea behind Funko Inc and Sacks Parente Golf, 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.