Correlation Between MBGGR and Funko

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

By analyzing existing cross correlation between MBGGR 33 19 MAY 25 and Funko Inc, you can compare the effects of market volatilities on MBGGR 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 MBGGR with a short position of Funko. Check out your portfolio center. Please also check ongoing floating volatility patterns of MBGGR and Funko.

Diversification Opportunities for MBGGR and Funko

0.3

Correlation Coefficient

MBGGR  Funko

Weak diversification

The 3 months correlation between MBGGR and Funko is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding MBGGR 33 19 MAY 25 and Funko Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Funko Inc and MBGGR 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 MBGGR 33 19 MAY 25 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 MBGGR i.e., MBGGR and Funko go up and down completely randomly.

Pair Corralation between MBGGR and Funko

Assuming the 90 days trading horizon MBGGR 33 19 MAY 25 is expected to under-perform the Funko. But the bond apears to be less risky and, when comparing its historical volatility, MBGGR 33 19 MAY 25 is 2.46 times less risky than Funko. The bond trades about -0.49 of its potential returns per unit of risk. The Funko Inc is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest  1,232  in Funko Inc on October 24, 2024 and sell it today you would earn a total of  101.00  from holding Funko Inc or generate 8.2% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	22.22%
Values	Daily Returns

MBGGR 33 19 MAY 25  vs.  Funko Inc

MBGGR 33 19

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days MBGGR 33 19 MAY 25 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, MBGGR is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Funko Inc

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Funko Inc are ranked lower than 6 (%) 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 MBGGR and Funko

The main advantage of trading using opposite MBGGR and Funko positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MBGGR 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 MBGGR 33 19 MAY 25 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.