Correlation Between Hall Of and Funko

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

By analyzing existing cross correlation between Hall of Fame and Funko Inc, you can compare the effects of market volatilities on Hall Of and Funko 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 Hall Of with a short position of Funko. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hall Of and Funko.

Diversification Opportunities for Hall Of and Funko

0.82

Correlation Coefficient

Hall Of  Funko

Very poor diversification

The 3 months correlation between Hall and Funko is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Hall of Fame and Funko Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Funko Inc and Hall Of 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 Hall of Fame are associated (or correlated) with Funko. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Funko Inc has no effect on the direction of Hall Of i.e., Hall Of and Funko go up and down completely randomly.

Pair Corralation between Hall Of and Funko

Given the investment horizon of 90 days Hall of Fame is expected to generate 2.07 times more return on investment than Funko. However, Hall Of is 2.07 times more volatile than Funko Inc. It trades about 0.0 of its potential returns per unit of risk. Funko Inc is currently generating about -0.28 per unit of risk. If you would invest  99.00  in Hall of Fame on December 27, 2024 and sell it today you would lose (14.00) from holding Hall of Fame or give up 14.14% of portfolio value over 90 days.

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

Hall of Fame  vs.  Funko Inc

Hall of Fame

Risk-Adjusted Performance

Very Weak

Over the last 90 days Hall of Fame has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable technical and fundamental indicators, Hall Of is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Funko Inc

Risk-Adjusted Performance

Very 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 uncertain performance in the last few months, the Stock's forward-looking signals remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Hall Of and Funko

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

The idea behind Hall of Fame and Funko Inc 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.