Correlation Between Clarus Corp and Six Flags
Can any of the company-specific risk be diversified away by investing in both Clarus Corp and Six Flags 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 Clarus Corp and Six Flags into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Clarus Corp and Six Flags Entertainment, you can compare the effects of market volatilities on Clarus Corp and Six Flags 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 Clarus Corp with a short position of Six Flags. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clarus Corp and Six Flags.
Diversification Opportunities for Clarus Corp and Six Flags
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Clarus and Six is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Clarus Corp and Six Flags Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Six Flags Entertainment and Clarus 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 Clarus Corp are associated (or correlated) with Six Flags. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Six Flags Entertainment has no effect on the direction of Clarus Corp i.e., Clarus Corp and Six Flags go up and down completely randomly.
Pair Corralation between Clarus Corp and Six Flags
Given the investment horizon of 90 days Clarus Corp is expected to under-perform the Six Flags. In addition to that, Clarus Corp is 1.59 times more volatile than Six Flags Entertainment. It trades about -0.02 of its total potential returns per unit of risk. Six Flags Entertainment is currently generating about 0.14 per unit of volatility. If you would invest 2,357 in Six Flags Entertainment on October 20, 2024 and sell it today you would earn a total of 843.00 from holding Six Flags Entertainment or generate 35.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 44.76% |
| Values | Daily Returns |
Clarus Corp vs. Six Flags Entertainment
Performance |
| Timeline |
| Clarus Corp |
| Six Flags Entertainment |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Clarus Corp and Six Flags Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Clarus Corp and Six Flags
The main advantage of trading using opposite Clarus Corp and Six Flags positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clarus Corp position performs unexpectedly, Six Flags 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 Six Flags will offset losses from the drop in Six Flags' long position.| Clarus Corp vs. Johnson Outdoors | Clarus Corp vs. Escalade Incorporated | Clarus Corp vs. JAKKS Pacific | Clarus Corp vs. Six Flags Entertainment |
| Six Flags vs. JAKKS Pacific | Six Flags vs. OneSpaWorld Holdings | Six Flags vs. Clarus Corp | Six Flags vs. Six Flags Entertainment |
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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