Correlation Between JAKKS Pacific and UMAX Group
Can any of the company-specific risk be diversified away by investing in both JAKKS Pacific and UMAX Group 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 UMAX Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JAKKS Pacific and UMAX Group Corp, you can compare the effects of market volatilities on JAKKS Pacific and UMAX Group 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 UMAX Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of JAKKS Pacific and UMAX Group.
Diversification Opportunities for JAKKS Pacific and UMAX Group
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between JAKKS and UMAX is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding JAKKS Pacific and UMAX Group Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UMAX Group 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 UMAX Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UMAX Group Corp has no effect on the direction of JAKKS Pacific i.e., JAKKS Pacific and UMAX Group go up and down completely randomly.
Pair Corralation between JAKKS Pacific and UMAX Group
Given the investment horizon of 90 days JAKKS Pacific is expected to generate 266.08 times less return on investment than UMAX Group. But when comparing it to its historical volatility, JAKKS Pacific is 18.86 times less risky than UMAX Group. It trades about 0.01 of its potential returns per unit of risk. UMAX Group Corp is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 0.20 in UMAX Group Corp on September 14, 2024 and sell it today you would lose (0.19) from holding UMAX Group Corp or give up 95.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JAKKS Pacific vs. UMAX Group Corp
Performance |
| Timeline |
| JAKKS Pacific |
| UMAX Group Corp |
JAKKS Pacific and UMAX Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JAKKS Pacific and UMAX Group
The main advantage of trading using opposite JAKKS Pacific and UMAX Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JAKKS Pacific position performs unexpectedly, UMAX Group 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 UMAX Group will offset losses from the drop in UMAX Group'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 |
| UMAX Group vs. Clarus Corp | UMAX Group vs. Johnson Outdoors | UMAX Group vs. JAKKS Pacific | UMAX Group vs. OneSpaWorld Holdings |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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