Correlation Between JAKKS Pacific and Nikon Corp
Can any of the company-specific risk be diversified away by investing in both JAKKS Pacific and Nikon 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 Nikon 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 Nikon Corp, you can compare the effects of market volatilities on JAKKS Pacific and Nikon 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 Nikon Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of JAKKS Pacific and Nikon Corp.
Diversification Opportunities for JAKKS Pacific and Nikon Corp
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between JAKKS and Nikon is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding JAKKS Pacific and Nikon Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nikon 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 Nikon Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nikon Corp has no effect on the direction of JAKKS Pacific i.e., JAKKS Pacific and Nikon Corp go up and down completely randomly.
Pair Corralation between JAKKS Pacific and Nikon Corp
Given the investment horizon of 90 days JAKKS Pacific is expected to under-perform the Nikon Corp. In addition to that, JAKKS Pacific is 1.37 times more volatile than Nikon Corp. It trades about -0.01 of its total potential returns per unit of risk. Nikon Corp is currently generating about 0.04 per unit of volatility. If you would invest 983.00 in Nikon Corp on August 27, 2024 and sell it today you would earn a total of 168.00 from holding Nikon Corp or generate 17.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JAKKS Pacific vs. Nikon Corp
Performance |
| Timeline |
| JAKKS Pacific |
| Nikon Corp |
JAKKS Pacific and Nikon Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JAKKS Pacific and Nikon Corp
The main advantage of trading using opposite JAKKS Pacific and Nikon Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JAKKS Pacific position performs unexpectedly, Nikon 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 Nikon Corp will offset losses from the drop in Nikon Corp's long position.| JAKKS Pacific vs. MCBC Holdings | JAKKS Pacific vs. Winnebago Industries | JAKKS Pacific vs. LCI Industries | JAKKS Pacific vs. Thor Industries |
| Nikon Corp vs. Yamaha Corp DRC | Nikon Corp vs. Planet Fitness | Nikon Corp vs. Plby Group | Nikon Corp vs. Shimano Inc 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |