Correlation Between Funko and Stellantis
Can any of the company-specific risk be diversified away by investing in both Funko and Stellantis 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 Stellantis into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Funko Inc and Stellantis NV, you can compare the effects of market volatilities on Funko and Stellantis 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 Stellantis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Funko and Stellantis.
Diversification Opportunities for Funko and Stellantis
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Funko and Stellantis is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Funko Inc and Stellantis NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stellantis NV 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 Stellantis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stellantis NV has no effect on the direction of Funko i.e., Funko and Stellantis go up and down completely randomly.
Pair Corralation between Funko and Stellantis
Given the investment horizon of 90 days Funko Inc is expected to generate 1.43 times more return on investment than Stellantis. However, Funko is 1.43 times more volatile than Stellantis NV. It trades about 0.06 of its potential returns per unit of risk. Stellantis NV is currently generating about -0.19 per unit of risk. If you would invest 865.00 in Funko Inc on August 24, 2024 and sell it today you would earn a total of 168.00 from holding Funko Inc or generate 19.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
Funko Inc vs. Stellantis NV
Performance |
| Timeline |
| Funko Inc |
| Stellantis NV |
Funko and Stellantis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Funko and Stellantis
The main advantage of trading using opposite Funko and Stellantis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Funko position performs unexpectedly, Stellantis 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 Stellantis will offset losses from the drop in Stellantis' long position.| Funko vs. Vista Outdoor | Funko vs. Six Flags Entertainment | Funko vs. Canlan Ice Sports | Funko vs. OneSpaWorld Holdings |
| Stellantis vs. Lucid Group | Stellantis vs. Rivian Automotive | Stellantis vs. Polestar Automotive Holding | Stellantis vs. Mullen Automotive |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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