Correlation Between Six Flags and Clarus Corp
Can any of the company-specific risk be diversified away by investing in both Six Flags and Clarus Corp 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 Six Flags and Clarus Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Six Flags Entertainment and Clarus Corp, you can compare the effects of market volatilities on Six Flags and Clarus Corp 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 Six Flags with a short position of Clarus Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Six Flags and Clarus Corp.
Diversification Opportunities for Six Flags and Clarus Corp
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Six and Clarus is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Six Flags Entertainment and Clarus Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clarus Corp and Six Flags 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 Six Flags Entertainment are associated (or correlated) with Clarus Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clarus Corp has no effect on the direction of Six Flags i.e., Six Flags and Clarus Corp go up and down completely randomly.
Pair Corralation between Six Flags and Clarus Corp
Considering the 90-day investment horizon Six Flags Entertainment is expected to under-perform the Clarus Corp. In addition to that, Six Flags is 1.2 times more volatile than Clarus Corp. It trades about -0.17 of its total potential returns per unit of risk. Clarus Corp is currently generating about 0.25 per unit of volatility. If you would invest 451.00 in Clarus Corp on November 1, 2024 and sell it today you would earn a total of 36.00 from holding Clarus Corp or generate 7.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Six Flags Entertainment vs. Clarus Corp
Performance |
| Timeline |
| Six Flags Entertainment |
| Clarus Corp |
Six Flags and Clarus Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Six Flags and Clarus Corp
The main advantage of trading using opposite Six Flags and Clarus Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Six Flags position performs unexpectedly, Clarus Corp 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 Clarus Corp will offset losses from the drop in Clarus Corp's long position.| Six Flags vs. Planet Fitness | Six Flags vs. Madison Square Garden | Six Flags vs. Mattel Inc | Six Flags vs. Johnson Outdoors |
| Clarus Corp vs. Johnson Outdoors | Clarus Corp vs. Escalade Incorporated | Clarus Corp vs. JAKKS Pacific | Clarus Corp vs. Six Flags Entertainment |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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