Correlation Between Six Flags and Sacks Parente
Can any of the company-specific risk be diversified away by investing in both Six Flags and Sacks Parente 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 Sacks Parente 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 Sacks Parente Golf,, you can compare the effects of market volatilities on Six Flags and Sacks Parente 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 Sacks Parente. Check out your portfolio center. Please also check ongoing floating volatility patterns of Six Flags and Sacks Parente.
Diversification Opportunities for Six Flags and Sacks Parente
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Six and Sacks is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Six Flags Entertainment and Sacks Parente Golf, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sacks Parente Golf, 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 Sacks Parente. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sacks Parente Golf, has no effect on the direction of Six Flags i.e., Six Flags and Sacks Parente go up and down completely randomly.
Pair Corralation between Six Flags and Sacks Parente
Considering the 90-day investment horizon Six Flags Entertainment is expected to generate 0.31 times more return on investment than Sacks Parente. However, Six Flags Entertainment is 3.19 times less risky than Sacks Parente. It trades about 0.06 of its potential returns per unit of risk. Sacks Parente Golf, is currently generating about -0.05 per unit of risk. If you would invest 3,893 in Six Flags Entertainment on September 3, 2024 and sell it today you would earn a total of 726.00 from holding Six Flags Entertainment or generate 18.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Six Flags Entertainment vs. Sacks Parente Golf,
Performance |
| Timeline |
| Six Flags Entertainment |
| Sacks Parente Golf, |
Six Flags and Sacks Parente Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Six Flags and Sacks Parente
The main advantage of trading using opposite Six Flags and Sacks Parente positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Six Flags position performs unexpectedly, Sacks Parente 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 Sacks Parente will offset losses from the drop in Sacks Parente's long position.| Six Flags vs. Planet Fitness | Six Flags vs. Madison Square Garden | Six Flags vs. Mattel Inc | Six Flags vs. Johnson Outdoors |
| Sacks Parente vs. Funko Inc | Sacks Parente vs. Madison Square Garden | Sacks Parente vs. Life Time Group | Sacks Parente 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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