Correlation Between Funko and Coupang LLC
Can any of the company-specific risk be diversified away by investing in both Funko and Coupang LLC 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 Coupang LLC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Funko Inc and Coupang LLC, you can compare the effects of market volatilities on Funko and Coupang LLC 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 Coupang LLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Funko and Coupang LLC.
Diversification Opportunities for Funko and Coupang LLC
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Funko and Coupang is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Funko Inc and Coupang LLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coupang LLC 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 Coupang LLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coupang LLC has no effect on the direction of Funko i.e., Funko and Coupang LLC go up and down completely randomly.
Pair Corralation between Funko and Coupang LLC
Given the investment horizon of 90 days Funko Inc is expected to under-perform the Coupang LLC. In addition to that, Funko is 1.07 times more volatile than Coupang LLC. It trades about -0.09 of its total potential returns per unit of risk. Coupang LLC is currently generating about -0.01 per unit of volatility. If you would invest 2,489 in Coupang LLC on August 26, 2024 and sell it today you would lose (57.00) from holding Coupang LLC or give up 2.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Funko Inc vs. Coupang LLC
Performance |
| Timeline |
| Funko Inc |
| Coupang LLC |
Funko and Coupang LLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Funko and Coupang LLC
The main advantage of trading using opposite Funko and Coupang LLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Funko position performs unexpectedly, Coupang LLC 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 Coupang LLC will offset losses from the drop in Coupang LLC's long position.The idea behind Funko Inc and Coupang LLC 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.| Coupang LLC vs. Sea | Coupang LLC vs. Wayfair | Coupang LLC vs. Chewy Inc | Coupang LLC vs. Vipshop Holdings Limited |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |