Correlation Between Canlan Ice and JAKKS Pacific
Can any of the company-specific risk be diversified away by investing in both Canlan Ice 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 Canlan Ice and JAKKS Pacific into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Canlan Ice Sports and JAKKS Pacific, you can compare the effects of market volatilities on Canlan Ice 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 Canlan Ice with a short position of JAKKS Pacific. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canlan Ice and JAKKS Pacific.
Diversification Opportunities for Canlan Ice and JAKKS Pacific
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Canlan and JAKKS is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Canlan Ice Sports and JAKKS Pacific in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JAKKS Pacific and Canlan Ice 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 Canlan Ice Sports 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 Canlan Ice i.e., Canlan Ice and JAKKS Pacific go up and down completely randomly.
Pair Corralation between Canlan Ice and JAKKS Pacific
If you would invest 2,746 in JAKKS Pacific on August 31, 2024 and sell it today you would earn a total of 54.00 from holding JAKKS Pacific or generate 1.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Canlan Ice Sports vs. JAKKS Pacific
Performance |
| Timeline |
| Canlan Ice Sports |
| JAKKS Pacific |
Canlan Ice and JAKKS Pacific Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canlan Ice and JAKKS Pacific
The main advantage of trading using opposite Canlan Ice and JAKKS Pacific positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canlan Ice 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.| Canlan Ice vs. WiMi Hologram Cloud | Canlan Ice vs. Vita Coco | Canlan Ice vs. Constellation Brands Class | Canlan Ice vs. Radcom |
| 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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