Correlation Between Funko and Inuvo
Can any of the company-specific risk be diversified away by investing in both Funko and Inuvo 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 Inuvo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Funko Inc and Inuvo Inc, you can compare the effects of market volatilities on Funko and Inuvo 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 Inuvo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Funko and Inuvo.
Diversification Opportunities for Funko and Inuvo
Good diversification
The 3 months correlation between Funko and Inuvo is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Funko Inc and Inuvo Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inuvo Inc 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 Inuvo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inuvo Inc has no effect on the direction of Funko i.e., Funko and Inuvo go up and down completely randomly.
Pair Corralation between Funko and Inuvo
Given the investment horizon of 90 days Funko is expected to generate 1.52 times less return on investment than Inuvo. But when comparing it to its historical volatility, Funko Inc is 1.51 times less risky than Inuvo. It trades about 0.03 of its potential returns per unit of risk. Inuvo Inc is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 28.00 in Inuvo Inc on August 29, 2024 and sell it today you would earn a total of 0.00 from holding Inuvo Inc or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Funko Inc vs. Inuvo Inc
Performance |
| Timeline |
| Funko Inc |
| Inuvo Inc |
Funko and Inuvo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Funko and Inuvo
The main advantage of trading using opposite Funko and Inuvo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Funko position performs unexpectedly, Inuvo 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 Inuvo will offset losses from the drop in Inuvo's long position.The idea behind Funko Inc and Inuvo Inc 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 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
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |