Correlation Between Stagwell and Kartoon Studios,

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

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

Diversification Opportunities for Stagwell and Kartoon Studios,

-0.07

Correlation Coefficient

Stagwell  Kartoon Studios,

Good diversification

The 3 months correlation between Stagwell and Kartoon is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Stagwell and Kartoon Studios, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kartoon Studios, and Stagwell 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 Stagwell are associated (or correlated) with Kartoon Studios,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kartoon Studios, has no effect on the direction of Stagwell i.e., Stagwell and Kartoon Studios, go up and down completely randomly.

Pair Corralation between Stagwell and Kartoon Studios,

Given the investment horizon of 90 days Stagwell is expected to generate 0.43 times more return on investment than Kartoon Studios,. However, Stagwell is 2.35 times less risky than Kartoon Studios,. It trades about -0.07 of its potential returns per unit of risk. Kartoon Studios, is currently generating about -0.05 per unit of risk. If you would invest  715.00  in Stagwell on October 9, 2024 and sell it today you would lose (74.00) from holding Stagwell or give up 10.35% of portfolio value over 90 days.

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

Stagwell  vs.  Kartoon Studios,

Stagwell

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Stagwell has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest abnormal performance, the Stock's technical and fundamental indicators remain stable and the latest fuss on Wall Street may also be a sign of long-term gains for the venture sophisticated investors.

Kartoon Studios,

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Kartoon Studios, has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in February 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Stagwell and Kartoon Studios,

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

The idea behind Stagwell and Kartoon Studios, 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.