Correlation Between B2digital and Hasbro
Can any of the company-specific risk be diversified away by investing in both B2digital and Hasbro 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 B2digital and Hasbro into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between B2digital and Hasbro Inc, you can compare the effects of market volatilities on B2digital and Hasbro 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 B2digital with a short position of Hasbro. Check out your portfolio center. Please also check ongoing floating volatility patterns of B2digital and Hasbro.
Diversification Opportunities for B2digital and Hasbro
Pay attention - limited upside
The 3 months correlation between B2digital and Hasbro is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding B2digital and Hasbro Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hasbro Inc and B2digital 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 B2digital are associated (or correlated) with Hasbro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hasbro Inc has no effect on the direction of B2digital i.e., B2digital and Hasbro go up and down completely randomly.
Pair Corralation between B2digital and Hasbro
Given the investment horizon of 90 days B2digital is expected to generate 60.0 times more return on investment than Hasbro. However, B2digital is 60.0 times more volatile than Hasbro Inc. It trades about 0.1 of its potential returns per unit of risk. Hasbro Inc is currently generating about 0.08 per unit of risk. If you would invest 0.00 in B2digital on September 2, 2024 and sell it today you would earn a total of 0.00 from holding B2digital or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 69.76% |
| Values | Daily Returns |
B2digital vs. Hasbro Inc
Performance |
| Timeline |
| B2digital |
| Hasbro Inc |
B2digital and Hasbro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with B2digital and Hasbro
The main advantage of trading using opposite B2digital and Hasbro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if B2digital position performs unexpectedly, Hasbro 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 Hasbro will offset losses from the drop in Hasbro's long position.| B2digital vs. Planet Fitness | B2digital vs. Plby Group | B2digital vs. Shimano Inc ADR | B2digital vs. Madison Square Garden |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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