Correlation Between JAKKS Pacific and OneSpaWorld Holdings
Can any of the company-specific risk be diversified away by investing in both JAKKS Pacific and OneSpaWorld Holdings 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 OneSpaWorld Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JAKKS Pacific and OneSpaWorld Holdings, you can compare the effects of market volatilities on JAKKS Pacific and OneSpaWorld Holdings 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 OneSpaWorld Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of JAKKS Pacific and OneSpaWorld Holdings.
Diversification Opportunities for JAKKS Pacific and OneSpaWorld Holdings
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between JAKKS and OneSpaWorld is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding JAKKS Pacific and OneSpaWorld Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OneSpaWorld Holdings 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 OneSpaWorld Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OneSpaWorld Holdings has no effect on the direction of JAKKS Pacific i.e., JAKKS Pacific and OneSpaWorld Holdings go up and down completely randomly.
Pair Corralation between JAKKS Pacific and OneSpaWorld Holdings
Given the investment horizon of 90 days JAKKS Pacific is expected to generate 1.78 times less return on investment than OneSpaWorld Holdings. In addition to that, JAKKS Pacific is 1.28 times more volatile than OneSpaWorld Holdings. It trades about 0.04 of its total potential returns per unit of risk. OneSpaWorld Holdings is currently generating about 0.08 per unit of volatility. If you would invest 1,865 in OneSpaWorld Holdings on October 19, 2024 and sell it today you would earn a total of 94.00 from holding OneSpaWorld Holdings or generate 5.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
JAKKS Pacific vs. OneSpaWorld Holdings
Performance |
| Timeline |
| JAKKS Pacific |
| OneSpaWorld Holdings |
JAKKS Pacific and OneSpaWorld Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JAKKS Pacific and OneSpaWorld Holdings
The main advantage of trading using opposite JAKKS Pacific and OneSpaWorld Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JAKKS Pacific position performs unexpectedly, OneSpaWorld Holdings 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 OneSpaWorld Holdings will offset losses from the drop in OneSpaWorld Holdings' long position.| JAKKS Pacific vs. Escalade Incorporated | JAKKS Pacific vs. Clarus Corp | JAKKS Pacific vs. Six Flags Entertainment | JAKKS Pacific vs. American Outdoor Brands |
| OneSpaWorld Holdings vs. Escalade Incorporated | OneSpaWorld Holdings vs. Johnson Outdoors | OneSpaWorld Holdings vs. Clarus Corp | OneSpaWorld Holdings 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 Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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