Correlation Between GameStop Corp and Funko
Can any of the company-specific risk be diversified away by investing in both GameStop Corp and Funko 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 GameStop Corp and Funko into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GameStop Corp and Funko Inc, you can compare the effects of market volatilities on GameStop Corp and Funko 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 GameStop Corp with a short position of Funko. Check out your portfolio center. Please also check ongoing floating volatility patterns of GameStop Corp and Funko.
Diversification Opportunities for GameStop Corp and Funko
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GameStop and Funko is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding GameStop Corp and Funko Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Funko Inc and GameStop Corp 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 GameStop Corp are associated (or correlated) with Funko. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Funko Inc has no effect on the direction of GameStop Corp i.e., GameStop Corp and Funko go up and down completely randomly.
Pair Corralation between GameStop Corp and Funko
Considering the 90-day investment horizon GameStop Corp is expected to generate 1.16 times more return on investment than Funko. However, GameStop Corp is 1.16 times more volatile than Funko Inc. It trades about 0.39 of its potential returns per unit of risk. Funko Inc is currently generating about -0.13 per unit of risk. If you would invest 2,057 in GameStop Corp on August 26, 2024 and sell it today you would earn a total of 733.00 from holding GameStop Corp or generate 35.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GameStop Corp vs. Funko Inc
Performance |
| Timeline |
| GameStop Corp |
| Funko Inc |
GameStop Corp and Funko Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GameStop Corp and Funko
The main advantage of trading using opposite GameStop Corp and Funko positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GameStop Corp position performs unexpectedly, Funko 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 Funko will offset losses from the drop in Funko's long position.| GameStop Corp vs. RH | GameStop Corp vs. Dicks Sporting Goods | GameStop Corp vs. Best Buy Co | GameStop Corp vs. AutoZone |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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