Correlation Between Escalade Incorporated and JAKKS Pacific
Can any of the company-specific risk be diversified away by investing in both Escalade Incorporated 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 Escalade Incorporated and JAKKS Pacific into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Escalade Incorporated and JAKKS Pacific, you can compare the effects of market volatilities on Escalade Incorporated 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 Escalade Incorporated with a short position of JAKKS Pacific. Check out your portfolio center. Please also check ongoing floating volatility patterns of Escalade Incorporated and JAKKS Pacific.
Diversification Opportunities for Escalade Incorporated and JAKKS Pacific
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Escalade and JAKKS is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Escalade Incorporated and JAKKS Pacific in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JAKKS Pacific and Escalade Incorporated 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 Escalade Incorporated 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 Escalade Incorporated i.e., Escalade Incorporated and JAKKS Pacific go up and down completely randomly.
Pair Corralation between Escalade Incorporated and JAKKS Pacific
Given the investment horizon of 90 days Escalade Incorporated is expected to generate 1.2 times less return on investment than JAKKS Pacific. In addition to that, Escalade Incorporated is 1.12 times more volatile than JAKKS Pacific. It trades about 0.08 of its total potential returns per unit of risk. JAKKS Pacific is currently generating about 0.11 per unit of volatility. If you would invest 2,360 in JAKKS Pacific on August 28, 2024 and sell it today you would earn a total of 465.00 from holding JAKKS Pacific or generate 19.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Escalade Incorporated vs. JAKKS Pacific
Performance |
| Timeline |
| Escalade Incorporated |
| JAKKS Pacific |
Escalade Incorporated and JAKKS Pacific Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Escalade Incorporated and JAKKS Pacific
The main advantage of trading using opposite Escalade Incorporated and JAKKS Pacific positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Escalade Incorporated 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.| Escalade Incorporated vs. Johnson Outdoors | Escalade Incorporated vs. First Business Financial | Escalade Incorporated vs. Flexsteel Industries | Escalade Incorporated vs. Superior Uniform 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |