Correlation Between TOYO Co, and Funko

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

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

Diversification Opportunities for TOYO Co, and Funko

0.16

Correlation Coefficient

TOYO Co,  Funko

Average diversification

The 3 months correlation between TOYO and Funko is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding TOYO Co, Ltd and Funko Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Funko Inc and TOYO Co, 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 TOYO Co, Ltd 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 TOYO Co, i.e., TOYO Co, and Funko go up and down completely randomly.

Pair Corralation between TOYO Co, and Funko

Given the investment horizon of 90 days TOYO Co, is expected to generate 2.24 times less return on investment than Funko. In addition to that, TOYO Co, is 2.12 times more volatile than Funko Inc. It trades about 0.09 of its total potential returns per unit of risk. Funko Inc is currently generating about 0.41 per unit of volatility. If you would invest  1,150  in Funko Inc on October 11, 2024 and sell it today you would earn a total of  300.00  from holding Funko Inc or generate 26.09% return on investment over 90 days.

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

TOYO Co, Ltd  vs.  Funko Inc

TOYO Co,

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in TOYO Co, Ltd are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, TOYO Co, displayed solid returns over the last few months and may actually be approaching a breakup point.

Funko Inc

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Funko Inc are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of very uncertain forward-looking signals, Funko displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with TOYO Co, and Funko

The main advantage of trading using opposite TOYO Co, and Funko positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TOYO Co, 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 TOYO Co, Ltd 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.