Correlation Between Hasbro and Hunter Douglas
Can any of the company-specific risk be diversified away by investing in both Hasbro and Hunter Douglas 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 Hasbro and Hunter Douglas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hasbro Inc and Hunter Douglas NV, you can compare the effects of market volatilities on Hasbro and Hunter Douglas 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 Hasbro with a short position of Hunter Douglas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hasbro and Hunter Douglas.
Diversification Opportunities for Hasbro and Hunter Douglas
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Hasbro and Hunter is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Hasbro Inc and Hunter Douglas NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hunter Douglas NV and Hasbro 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 Hasbro Inc are associated (or correlated) with Hunter Douglas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hunter Douglas NV has no effect on the direction of Hasbro i.e., Hasbro and Hunter Douglas go up and down completely randomly.
Pair Corralation between Hasbro and Hunter Douglas
If you would invest 6,270 in Hasbro Inc on September 13, 2024 and sell it today you would earn a total of 266.00 from holding Hasbro Inc or generate 4.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Hasbro Inc vs. Hunter Douglas NV
Performance |
| Timeline |
| Hasbro Inc |
| Hunter Douglas NV |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Hasbro and Hunter Douglas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hasbro and Hunter Douglas
The main advantage of trading using opposite Hasbro and Hunter Douglas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hasbro position performs unexpectedly, Hunter Douglas 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 Hunter Douglas will offset losses from the drop in Hunter Douglas' long position.| Hasbro vs. Clarus Corp | Hasbro vs. Escalade Incorporated | Hasbro vs. Johnson Outdoors | Hasbro vs. JAKKS Pacific |
| Hunter Douglas vs. Barrick Gold Corp | Hunter Douglas vs. Xponential Fitness | Hunter Douglas vs. GEN Restaurant Group, | Hunter Douglas vs. American Hotel Income |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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