Correlation Between SeaWorld Entertainment and Hasbro
Can any of the company-specific risk be diversified away by investing in both SeaWorld Entertainment and Hasbro 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 SeaWorld Entertainment and Hasbro into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SeaWorld Entertainment and Hasbro Inc, you can compare the effects of market volatilities on SeaWorld Entertainment and Hasbro 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 SeaWorld Entertainment with a short position of Hasbro. Check out your portfolio center. Please also check ongoing floating volatility patterns of SeaWorld Entertainment and Hasbro.
Diversification Opportunities for SeaWorld Entertainment and Hasbro
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SeaWorld and Hasbro is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SeaWorld Entertainment and Hasbro Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hasbro Inc and SeaWorld Entertainment 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 SeaWorld Entertainment are associated (or correlated) with Hasbro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hasbro Inc has no effect on the direction of SeaWorld Entertainment i.e., SeaWorld Entertainment and Hasbro go up and down completely randomly.
Pair Corralation between SeaWorld Entertainment and Hasbro
If you would invest 5,603 in Hasbro Inc on December 5, 2024 and sell it today you would earn a total of 701.00 from holding Hasbro Inc or generate 12.51% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
SeaWorld Entertainment vs. Hasbro Inc
Performance |
Timeline |
SeaWorld Entertainment |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Hasbro Inc |
SeaWorld Entertainment and Hasbro Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with SeaWorld Entertainment and Hasbro
The main advantage of trading using opposite SeaWorld Entertainment and Hasbro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SeaWorld Entertainment position performs unexpectedly, Hasbro 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 Hasbro will offset losses from the drop in Hasbro's long position.SeaWorld Entertainment vs. JAKKS Pacific | SeaWorld Entertainment vs. OneSpaWorld Holdings | SeaWorld Entertainment vs. Clarus Corp | SeaWorld Entertainment vs. Six Flags Entertainment |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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