Correlation Between Hasbro and 49456BAU5
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By analyzing existing cross correlation between Hasbro Inc and KMI 175 15 NOV 26, you can compare the effects of market volatilities on Hasbro and 49456BAU5 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 49456BAU5. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hasbro and 49456BAU5.
Diversification Opportunities for Hasbro and 49456BAU5
Modest diversification
The 3 months correlation between Hasbro and 49456BAU5 is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Hasbro Inc and KMI 175 15 NOV 26 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KMI 175 15 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 49456BAU5. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KMI 175 15 has no effect on the direction of Hasbro i.e., Hasbro and 49456BAU5 go up and down completely randomly.
Pair Corralation between Hasbro and 49456BAU5
Considering the 90-day investment horizon Hasbro Inc is expected to generate 2.93 times more return on investment than 49456BAU5. However, Hasbro is 2.93 times more volatile than KMI 175 15 NOV 26. It trades about 0.07 of its potential returns per unit of risk. KMI 175 15 NOV 26 is currently generating about -0.02 per unit of risk. If you would invest 4,959 in Hasbro Inc on September 12, 2024 and sell it today you would earn a total of 1,577 from holding Hasbro Inc or generate 31.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 93.95% |
| Values | Daily Returns |
Hasbro Inc vs. KMI 175 15 NOV 26
Performance |
| Timeline |
| Hasbro Inc |
| KMI 175 15 |
Hasbro and 49456BAU5 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hasbro and 49456BAU5
The main advantage of trading using opposite Hasbro and 49456BAU5 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hasbro position performs unexpectedly, 49456BAU5 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 49456BAU5 will offset losses from the drop in 49456BAU5's long position.The idea behind Hasbro Inc and KMI 175 15 NOV 26 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.| 49456BAU5 vs. Playa Hotels Resorts | 49456BAU5 vs. United Parks Resorts | 49456BAU5 vs. Hasbro Inc | 49456BAU5 vs. Pearson PLC ADR |
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.
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