Correlation Between JAKKS Pacific and Basic-Fit
Can any of the company-specific risk be diversified away by investing in both JAKKS Pacific and Basic-Fit 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 Basic-Fit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JAKKS Pacific and Basic Fit NV, you can compare the effects of market volatilities on JAKKS Pacific and Basic-Fit 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 Basic-Fit. Check out your portfolio center. Please also check ongoing floating volatility patterns of JAKKS Pacific and Basic-Fit.
Diversification Opportunities for JAKKS Pacific and Basic-Fit
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between JAKKS and Basic-Fit is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding JAKKS Pacific and Basic Fit NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Basic Fit NV 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 Basic-Fit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Basic Fit NV has no effect on the direction of JAKKS Pacific i.e., JAKKS Pacific and Basic-Fit go up and down completely randomly.
Pair Corralation between JAKKS Pacific and Basic-Fit
Given the investment horizon of 90 days JAKKS Pacific is expected to generate 1.44 times more return on investment than Basic-Fit. However, JAKKS Pacific is 1.44 times more volatile than Basic Fit NV. It trades about 0.09 of its potential returns per unit of risk. Basic Fit NV is currently generating about -0.18 per unit of risk. If you would invest 2,658 in JAKKS Pacific on August 28, 2024 and sell it today you would earn a total of 167.00 from holding JAKKS Pacific or generate 6.28% 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. Basic Fit NV
Performance |
| Timeline |
| JAKKS Pacific |
| Basic Fit NV |
JAKKS Pacific and Basic-Fit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JAKKS Pacific and Basic-Fit
The main advantage of trading using opposite JAKKS Pacific and Basic-Fit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JAKKS Pacific position performs unexpectedly, Basic-Fit 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 Basic-Fit will offset losses from the drop in Basic-Fit'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 |
| Basic-Fit vs. HUMANA INC | Basic-Fit vs. Aquagold International | Basic-Fit vs. Barloworld Ltd ADR | Basic-Fit vs. Morningstar Unconstrained Allocation |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |