Correlation Between Bowlero Corp and JAKKS Pacific
Can any of the company-specific risk be diversified away by investing in both Bowlero Corp and JAKKS Pacific 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 Bowlero Corp and JAKKS Pacific into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bowlero Corp and JAKKS Pacific, you can compare the effects of market volatilities on Bowlero Corp and JAKKS Pacific 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 Bowlero Corp with a short position of JAKKS Pacific. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bowlero Corp and JAKKS Pacific.
Diversification Opportunities for Bowlero Corp and JAKKS Pacific
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bowlero and JAKKS is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bowlero Corp and JAKKS Pacific in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JAKKS Pacific and Bowlero Corp 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 Bowlero Corp are associated (or correlated) with JAKKS Pacific. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JAKKS Pacific has no effect on the direction of Bowlero Corp i.e., Bowlero Corp and JAKKS Pacific go up and down completely randomly.
Pair Corralation between Bowlero Corp and JAKKS Pacific
Given the investment horizon of 90 days Bowlero Corp is expected to generate 14.62 times less return on investment than JAKKS Pacific. But when comparing it to its historical volatility, Bowlero Corp is 1.15 times less risky than JAKKS Pacific. It trades about 0.0 of its potential returns per unit of risk. JAKKS Pacific is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 2,010 in JAKKS Pacific on October 20, 2024 and sell it today you would earn a total of 760.00 from holding JAKKS Pacific or generate 37.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 97.58% |
| Values | Daily Returns |
Bowlero Corp vs. JAKKS Pacific
Performance |
| Timeline |
| Bowlero Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| JAKKS Pacific |
Bowlero Corp and JAKKS Pacific Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bowlero Corp and JAKKS Pacific
The main advantage of trading using opposite Bowlero Corp and JAKKS Pacific positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bowlero Corp position performs unexpectedly, JAKKS Pacific 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 JAKKS Pacific will offset losses from the drop in JAKKS Pacific's long position.| Bowlero Corp vs. Acushnet Holdings Corp | Bowlero Corp vs. YETI Holdings | Bowlero Corp vs. Madison Square Garden | Bowlero Corp vs. Life Time Group |
| JAKKS Pacific vs. Escalade Incorporated | JAKKS Pacific vs. Clarus Corp | JAKKS Pacific vs. Six Flags Entertainment | JAKKS Pacific vs. American Outdoor Brands |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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