Correlation Between JAKKS Pacific and Bowlero Corp
Can any of the company-specific risk be diversified away by investing in both JAKKS Pacific and Bowlero Corp 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 JAKKS Pacific and Bowlero Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JAKKS Pacific and Bowlero Corp, you can compare the effects of market volatilities on JAKKS Pacific and Bowlero Corp 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 JAKKS Pacific with a short position of Bowlero Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of JAKKS Pacific and Bowlero Corp.
Diversification Opportunities for JAKKS Pacific and Bowlero Corp
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between JAKKS and Bowlero is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding JAKKS Pacific and Bowlero Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bowlero Corp and JAKKS Pacific 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 JAKKS Pacific are associated (or correlated) with Bowlero Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bowlero Corp has no effect on the direction of JAKKS Pacific i.e., JAKKS Pacific and Bowlero Corp go up and down completely randomly.
Pair Corralation between JAKKS Pacific and Bowlero Corp
Given the investment horizon of 90 days JAKKS Pacific is expected to generate 1.43 times less return on investment than Bowlero Corp. In addition to that, JAKKS Pacific is 1.03 times more volatile than Bowlero Corp. It trades about 0.09 of its total potential returns per unit of risk. Bowlero Corp is currently generating about 0.13 per unit of volatility. If you would invest 1,149 in Bowlero Corp on August 28, 2024 and sell it today you would earn a total of 114.00 from holding Bowlero Corp or generate 9.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JAKKS Pacific vs. Bowlero Corp
Performance |
| Timeline |
| JAKKS Pacific |
| Bowlero Corp |
JAKKS Pacific and Bowlero Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JAKKS Pacific and Bowlero Corp
The main advantage of trading using opposite JAKKS Pacific and Bowlero Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JAKKS Pacific position performs unexpectedly, Bowlero Corp 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 Bowlero Corp will offset losses from the drop in Bowlero Corp's long position.| JAKKS Pacific vs. Escalade Incorporated | JAKKS Pacific vs. Clarus Corp | JAKKS Pacific vs. Six Flags Entertainment | JAKKS Pacific vs. American Outdoor Brands |
| Bowlero Corp vs. Acushnet Holdings Corp | Bowlero Corp vs. YETI Holdings | Bowlero Corp vs. Madison Square Garden | Bowlero Corp vs. Life Time Group |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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