Correlation Between Nautilus and Funko
Can any of the company-specific risk be diversified away by investing in both Nautilus and Funko 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 Nautilus and Funko into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nautilus Group and Funko Inc, you can compare the effects of market volatilities on Nautilus and Funko 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 Nautilus with a short position of Funko. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nautilus and Funko.
Diversification Opportunities for Nautilus and Funko
Significant diversification
The 3 months correlation between Nautilus and Funko is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Nautilus Group and Funko Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Funko Inc and Nautilus 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 Nautilus Group are associated (or correlated) with Funko. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Funko Inc has no effect on the direction of Nautilus i.e., Nautilus and Funko go up and down completely randomly.
Pair Corralation between Nautilus and Funko
Considering the 90-day investment horizon Nautilus Group is expected to under-perform the Funko. But the stock apears to be less risky and, when comparing its historical volatility, Nautilus Group is 1.1 times less risky than Funko. The stock trades about -0.05 of its potential returns per unit of risk. The Funko Inc is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,003 in Funko Inc on September 3, 2024 and sell it today you would earn a total of 172.00 from holding Funko Inc or generate 17.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 30.71% |
| Values | Daily Returns |
Nautilus Group vs. Funko Inc
Performance |
| Timeline |
| Nautilus Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Funko Inc |
Nautilus and Funko Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nautilus and Funko
The main advantage of trading using opposite Nautilus and Funko positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nautilus position performs unexpectedly, Funko 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 Funko will offset losses from the drop in Funko's long position.| Nautilus vs. Xponential Fitness | Nautilus vs. Life Time Group | Nautilus vs. Mattel Inc | Nautilus vs. Bowlero Corp |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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