Correlation Between FG Group and JAKKS Pacific
Can any of the company-specific risk be diversified away by investing in both FG Group 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 FG Group and JAKKS Pacific into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FG Group Holdings and JAKKS Pacific, you can compare the effects of market volatilities on FG Group 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 FG Group with a short position of JAKKS Pacific. Check out your portfolio center. Please also check ongoing floating volatility patterns of FG Group and JAKKS Pacific.
Diversification Opportunities for FG Group and JAKKS Pacific
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between FGH and JAKKS is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding FG Group Holdings and JAKKS Pacific in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JAKKS Pacific and FG Group 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 FG Group Holdings 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 FG Group i.e., FG Group and JAKKS Pacific go up and down completely randomly.
Pair Corralation between FG Group and JAKKS Pacific
If you would invest 1,905 in JAKKS Pacific on November 27, 2024 and sell it today you would earn a total of 978.00 from holding JAKKS Pacific or generate 51.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
FG Group Holdings vs. JAKKS Pacific
Performance |
| Timeline |
| FG Group Holdings |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| JAKKS Pacific |
FG Group and JAKKS Pacific Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FG Group and JAKKS Pacific
The main advantage of trading using opposite FG Group and JAKKS Pacific positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FG Group 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.| FG Group vs. OneSpaWorld Holdings | FG Group vs. Games Workshop Group | FG Group vs. Johnson Outdoors | FG Group vs. American Outdoor Brands |
| 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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