Correlation Between Hasbro and SeaWorld Entertainment
Can any of the company-specific risk be diversified away by investing in both Hasbro and SeaWorld Entertainment 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 SeaWorld Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hasbro Inc and SeaWorld Entertainment, you can compare the effects of market volatilities on Hasbro and SeaWorld Entertainment 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 SeaWorld Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hasbro and SeaWorld Entertainment.
Diversification Opportunities for Hasbro and SeaWorld Entertainment
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hasbro and SeaWorld is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Hasbro Inc and SeaWorld Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SeaWorld Entertainment 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 SeaWorld Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SeaWorld Entertainment has no effect on the direction of Hasbro i.e., Hasbro and SeaWorld Entertainment go up and down completely randomly.
Pair Corralation between Hasbro and SeaWorld Entertainment
If you would invest 5,381 in SeaWorld Entertainment on August 27, 2024 and sell it today you would earn a total of 0.00 from holding SeaWorld Entertainment or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Hasbro Inc vs. SeaWorld Entertainment
Performance |
| Timeline |
| Hasbro Inc |
| SeaWorld Entertainment |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Hasbro and SeaWorld Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hasbro and SeaWorld Entertainment
The main advantage of trading using opposite Hasbro and SeaWorld Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hasbro position performs unexpectedly, SeaWorld Entertainment 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 SeaWorld Entertainment will offset losses from the drop in SeaWorld Entertainment's long position.The idea behind Hasbro Inc and SeaWorld Entertainment 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.| SeaWorld Entertainment vs. JAKKS Pacific | SeaWorld Entertainment vs. OneSpaWorld Holdings | SeaWorld Entertainment vs. Clarus Corp | SeaWorld Entertainment 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |