Correlation Between Hasbro and RadNet

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Hasbro and RadNet 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 RadNet into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hasbro Inc and RadNet Inc, you can compare the effects of market volatilities on Hasbro and RadNet 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 RadNet. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hasbro and RadNet.

Diversification Opportunities for Hasbro and RadNet

-0.66
  Correlation Coefficient

Excellent diversification

The 3 months correlation between Hasbro and RadNet is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Hasbro Inc and RadNet Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RadNet Inc 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 RadNet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RadNet Inc has no effect on the direction of Hasbro i.e., Hasbro and RadNet go up and down completely randomly.

Pair Corralation between Hasbro and RadNet

Considering the 90-day investment horizon Hasbro is expected to generate 5.56 times less return on investment than RadNet. But when comparing it to its historical volatility, Hasbro Inc is 1.24 times less risky than RadNet. It trades about 0.03 of its potential returns per unit of risk. RadNet Inc is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  1,881  in RadNet Inc on September 14, 2024 and sell it today you would earn a total of  5,965  from holding RadNet Inc or generate 317.12% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Hasbro Inc  vs.  RadNet Inc

 Performance 
       Timeline  
Hasbro Inc 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Hasbro Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.
RadNet Inc 

Risk-Adjusted Performance

8 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in RadNet Inc are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, RadNet unveiled solid returns over the last few months and may actually be approaching a breakup point.

Hasbro and RadNet Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Hasbro and RadNet

The main advantage of trading using opposite Hasbro and RadNet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hasbro position performs unexpectedly, RadNet 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 RadNet will offset losses from the drop in RadNet's long position.
The idea behind Hasbro Inc and RadNet Inc 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.
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.

Other Complementary Tools

Idea Optimizer
Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio
Portfolio Optimization
Compute new portfolio that will generate highest expected return given your specified tolerance for risk
Stock Screener
Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook.
Top Crypto Exchanges
Search and analyze digital assets across top global cryptocurrency exchanges
Price Transformation
Use Price Transformation models to analyze the depth of different equity instruments across global markets