Correlation Between Funko and 21036PBL1

Can any of the company-specific risk be diversified away by investing in both Funko and 21036PBL1 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 21036PBL1 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Funko Inc and STZ 475 09 MAY 32, you can compare the effects of market volatilities on Funko and 21036PBL1 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 21036PBL1. Check out your portfolio center. Please also check ongoing floating volatility patterns of Funko and 21036PBL1.

Diversification Opportunities for Funko and 21036PBL1

-0.09

Correlation Coefficient

Funko  21036PBL1

Good diversification

The 3 months correlation between Funko and 21036PBL1 is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Funko Inc and STZ 475 09 MAY 32 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STZ 475 09 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 21036PBL1. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STZ 475 09 has no effect on the direction of Funko i.e., Funko and 21036PBL1 go up and down completely randomly.

Pair Corralation between Funko and 21036PBL1

Given the investment horizon of 90 days Funko Inc is expected to generate 3.46 times more return on investment than 21036PBL1. However, Funko is 3.46 times more volatile than STZ 475 09 MAY 32. It trades about 0.4 of its potential returns per unit of risk. STZ 475 09 MAY 32 is currently generating about -0.08 per unit of risk. If you would invest  1,142  in Funko Inc on October 8, 2024 and sell it today you would earn a total of  257.00  from holding Funko Inc or generate 22.5% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	95.0%
Values	Daily Returns

Funko Inc  vs.  STZ 475 09 MAY 32

Funko Inc

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Funko Inc are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of very uncertain forward-looking signals, Funko displayed solid returns over the last few months and may actually be approaching a breakup point.

STZ 475 09

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days STZ 475 09 MAY 32 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, 21036PBL1 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 21036PBL1

The main advantage of trading using opposite Funko and 21036PBL1 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Funko position performs unexpectedly, 21036PBL1 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 21036PBL1 will offset losses from the drop in 21036PBL1's long position.

The idea behind Funko Inc and STZ 475 09 MAY 32 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.