Correlation Between JAKKS Pacific and Amer Sports,

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

By analyzing existing cross correlation between JAKKS Pacific and Amer Sports,, you can compare the effects of market volatilities on JAKKS Pacific and Amer Sports, 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 JAKKS Pacific with a short position of Amer Sports,. Check out your portfolio center. Please also check ongoing floating volatility patterns of JAKKS Pacific and Amer Sports,.

Diversification Opportunities for JAKKS Pacific and Amer Sports,

0.68

Correlation Coefficient

JAKKS Pacific  Amer Sports,

Poor diversification

The 3 months correlation between JAKKS and Amer is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding JAKKS Pacific and Amer Sports, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amer Sports, and JAKKS Pacific 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 JAKKS Pacific are associated (or correlated) with Amer Sports,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amer Sports, has no effect on the direction of JAKKS Pacific i.e., JAKKS Pacific and Amer Sports, go up and down completely randomly.

Pair Corralation between JAKKS Pacific and Amer Sports,

Given the investment horizon of 90 days JAKKS Pacific is expected to under-perform the Amer Sports,. But the stock apears to be less risky and, when comparing its historical volatility, JAKKS Pacific is 1.0 times less risky than Amer Sports,. The stock trades about -0.03 of its potential returns per unit of risk. The Amer Sports, is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest  2,879  in Amer Sports, on December 26, 2024 and sell it today you would lose (81.00) from holding Amer Sports, or give up 2.81% of portfolio value over 90 days.

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

JAKKS Pacific  vs.  Amer Sports,

JAKKS Pacific

Risk-Adjusted Performance

Very Weak

Over the last 90 days JAKKS Pacific has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent forward-looking signals, JAKKS Pacific is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Amer Sports,

Risk-Adjusted Performance

Weak

Over the last 90 days Amer Sports, has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Amer Sports, is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with JAKKS Pacific and Amer Sports,

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

The idea behind JAKKS Pacific and Amer Sports, 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.

Check out your portfolio center.

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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.