Correlation Between Hasbro and Landcadia Holdings
Can any of the company-specific risk be diversified away by investing in both Hasbro and Landcadia Holdings 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 Landcadia Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hasbro Inc and Landcadia Holdings II, you can compare the effects of market volatilities on Hasbro and Landcadia Holdings 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 Landcadia Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hasbro and Landcadia Holdings.
Diversification Opportunities for Hasbro and Landcadia Holdings
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Hasbro and Landcadia is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Hasbro Inc and Landcadia Holdings II in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Landcadia Holdings 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 Landcadia Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Landcadia Holdings has no effect on the direction of Hasbro i.e., Hasbro and Landcadia Holdings go up and down completely randomly.
Pair Corralation between Hasbro and Landcadia Holdings
If you would invest 0.00 in Landcadia Holdings II on August 29, 2024 and sell it today you would earn a total of 0.00 from holding Landcadia Holdings II or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 1.56% |
| Values | Daily Returns |
Hasbro Inc vs. Landcadia Holdings II
Performance |
| Timeline |
| Hasbro Inc |
| Landcadia Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Hasbro and Landcadia Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hasbro and Landcadia Holdings
The main advantage of trading using opposite Hasbro and Landcadia Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hasbro position performs unexpectedly, Landcadia Holdings 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 Landcadia Holdings will offset losses from the drop in Landcadia Holdings' long position.The idea behind Hasbro Inc and Landcadia Holdings II pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Landcadia Holdings vs. Capital Clean Energy | Landcadia Holdings vs. Ecoloclean Industrs | Landcadia Holdings vs. Proficient Auto Logistics, | Landcadia Holdings vs. Afya |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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