Correlation Between Funko and B2digital

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Can any of the company-specific risk be diversified away by investing in both Funko and B2digital 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 Funko and B2digital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Funko Inc and B2digital, you can compare the effects of market volatilities on Funko and B2digital 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 Funko with a short position of B2digital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Funko and B2digital.

Diversification Opportunities for Funko and B2digital

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Funko and B2digital is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Funko Inc and B2digital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on B2digital and Funko 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 Funko Inc are associated (or correlated) with B2digital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of B2digital has no effect on the direction of Funko i.e., Funko and B2digital go up and down completely randomly.

Pair Corralation between Funko and B2digital

If you would invest  0.00  in B2digital on August 31, 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 Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy95.45%
ValuesDaily Returns

Funko Inc  vs.  B2digital

 Performance 
       Timeline  
Funko Inc 

Risk-Adjusted Performance

5 of 100

 
Weak
 
Strong
Modest
Compared to the overall equity markets, risk-adjusted returns on investments in Funko Inc are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of very uncertain forward-looking signals, Funko displayed solid returns over the last few months and may actually be approaching a breakup point.
B2digital 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days B2digital has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable fundamental indicators, B2digital is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Funko and B2digital Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Funko and B2digital

The main advantage of trading using opposite Funko and B2digital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Funko position performs unexpectedly, B2digital 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 B2digital will offset losses from the drop in B2digital's long position.
The idea behind Funko Inc and B2digital pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.

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