Correlation Between Six Flags and JAKKS Pacific
Can any of the company-specific risk be diversified away by investing in both Six Flags and JAKKS Pacific 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 JAKKS Pacific 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 JAKKS Pacific, you can compare the effects of market volatilities on Six Flags and JAKKS Pacific 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 JAKKS Pacific. Check out your portfolio center. Please also check ongoing floating volatility patterns of Six Flags and JAKKS Pacific.
Diversification Opportunities for Six Flags and JAKKS Pacific
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Six and JAKKS is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Six Flags Entertainment and JAKKS Pacific in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JAKKS Pacific 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 JAKKS Pacific. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JAKKS Pacific has no effect on the direction of Six Flags i.e., Six Flags and JAKKS Pacific go up and down completely randomly.
Pair Corralation between Six Flags and JAKKS Pacific
Considering the 90-day investment horizon Six Flags Entertainment is expected to generate 0.59 times more return on investment than JAKKS Pacific. However, Six Flags Entertainment is 1.69 times less risky than JAKKS Pacific. It trades about 0.05 of its potential returns per unit of risk. JAKKS Pacific is currently generating about 0.01 per unit of risk. If you would invest 3,730 in Six Flags Entertainment on August 24, 2024 and sell it today you would earn a total of 829.00 from holding Six Flags Entertainment or generate 22.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Six Flags Entertainment vs. JAKKS Pacific
Performance |
| Timeline |
| Six Flags Entertainment |
| JAKKS Pacific |
Six Flags and JAKKS Pacific Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Six Flags and JAKKS Pacific
The main advantage of trading using opposite Six Flags and JAKKS Pacific positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Six Flags position performs unexpectedly, JAKKS Pacific 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 JAKKS Pacific will offset losses from the drop in JAKKS Pacific's long position.| Six Flags vs. Planet Fitness | Six Flags vs. Madison Square Garden | Six Flags vs. Mattel Inc | Six Flags vs. Johnson Outdoors |
| JAKKS Pacific vs. Escalade Incorporated | JAKKS Pacific vs. Clarus Corp | JAKKS Pacific vs. Six Flags Entertainment | JAKKS Pacific vs. American Outdoor Brands |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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