Correlation Between LandBridge Company and Funko

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

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

Diversification Opportunities for LandBridge Company and Funko

-0.55

Correlation Coefficient

LandBridge Company  Funko

Excellent diversification

The 3 months correlation between LandBridge and Funko is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding LandBridge Company LLC and Funko Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Funko Inc and LandBridge Company 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 LandBridge Company LLC 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 LandBridge Company i.e., LandBridge Company and Funko go up and down completely randomly.

Pair Corralation between LandBridge Company and Funko

Allowing for the 90-day total investment horizon LandBridge Company LLC is expected to under-perform the Funko. In addition to that, LandBridge Company is 1.88 times more volatile than Funko Inc. It trades about -0.11 of its total potential returns per unit of risk. Funko Inc is currently generating about 0.34 per unit of volatility. If you would invest  1,033  in Funko Inc on September 22, 2024 and sell it today you would earn a total of  216.00  from holding Funko Inc or generate 20.91% return on investment over 90 days.

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

LandBridge Company LLC  vs.  Funko Inc

LandBridge Company

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in LandBridge Company LLC are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite somewhat inconsistent fundamental drivers, LandBridge Company sustained solid returns over the last few months and may actually be approaching a breakup point.

Funko Inc

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Funko Inc are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating forward-looking signals, Funko may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with LandBridge Company and Funko

The main advantage of trading using opposite LandBridge Company and Funko positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LandBridge Company 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 LandBridge Company LLC 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.