Correlation Between JBDI Holdings and Funko

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

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

Diversification Opportunities for JBDI Holdings and Funko

-0.04

Correlation Coefficient

JBDI Holdings  Funko

Good diversification

The 3 months correlation between JBDI and Funko is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding JBDI Holdings Limited and Funko Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Funko Inc and JBDI Holdings 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 JBDI Holdings Limited 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 JBDI Holdings i.e., JBDI Holdings and Funko go up and down completely randomly.

Pair Corralation between JBDI Holdings and Funko

Given the investment horizon of 90 days JBDI Holdings Limited is expected to under-perform the Funko. In addition to that, JBDI Holdings is 4.54 times more volatile than Funko Inc. It trades about -0.04 of its total potential returns per unit of risk. Funko Inc is currently generating about 0.11 per unit of volatility. If you would invest  950.00  in Funko Inc on October 26, 2024 and sell it today you would earn a total of  396.00  from holding Funko Inc or generate 41.68% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	82.26%
Values	Daily Returns

JBDI Holdings Limited  vs.  Funko Inc

JBDI Holdings Limited

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days JBDI Holdings Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Despite abnormal performance in the last few months, the Stock's fundamental indicators remain fairly strong which may send shares a bit higher in February 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Funko Inc

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Funko Inc are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of very uncertain forward-looking signals, Funko may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with JBDI Holdings and Funko

The main advantage of trading using opposite JBDI Holdings and Funko positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JBDI Holdings 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 JBDI Holdings Limited 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.