Correlation Between Above Food and Funko
Can any of the company-specific risk be diversified away by investing in both Above Food 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 Above Food and Funko into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Above Food Ingredients and Funko Inc, you can compare the effects of market volatilities on Above Food 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 Above Food with a short position of Funko. Check out your portfolio center. Please also check ongoing floating volatility patterns of Above Food and Funko.
Diversification Opportunities for Above Food and Funko
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Above and Funko is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Above Food Ingredients and Funko Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Funko Inc and Above Food 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 Above Food Ingredients 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 Above Food i.e., Above Food and Funko go up and down completely randomly.
Pair Corralation between Above Food and Funko
Given the investment horizon of 90 days Above Food Ingredients is expected to generate 6.17 times more return on investment than Funko. However, Above Food is 6.17 times more volatile than Funko Inc. It trades about 0.05 of its potential returns per unit of risk. Funko Inc is currently generating about 0.21 per unit of risk. If you would invest 52.00 in Above Food Ingredients on September 13, 2024 and sell it today you would lose (2.00) from holding Above Food Ingredients or give up 3.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Above Food Ingredients vs. Funko Inc
Performance |
| Timeline |
| Above Food Ingredients |
| Funko Inc |
Above Food and Funko Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Above Food and Funko
The main advantage of trading using opposite Above Food and Funko positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Above Food 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.| Above Food vs. CECO Environmental Corp | Above Food vs. Texas Roadhouse | Above Food vs. United States Steel | Above Food vs. Dine Brands Global |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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