Correlation Between OneSpaWorld Holdings and Hasbro
Can any of the company-specific risk be diversified away by investing in both OneSpaWorld Holdings and Hasbro 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 OneSpaWorld Holdings and Hasbro into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OneSpaWorld Holdings and Hasbro Inc, you can compare the effects of market volatilities on OneSpaWorld Holdings and Hasbro 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 OneSpaWorld Holdings with a short position of Hasbro. Check out your portfolio center. Please also check ongoing floating volatility patterns of OneSpaWorld Holdings and Hasbro.
Diversification Opportunities for OneSpaWorld Holdings and Hasbro
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between OneSpaWorld and Hasbro is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding OneSpaWorld Holdings and Hasbro Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hasbro Inc and OneSpaWorld Holdings 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 OneSpaWorld Holdings are associated (or correlated) with Hasbro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hasbro Inc has no effect on the direction of OneSpaWorld Holdings i.e., OneSpaWorld Holdings and Hasbro go up and down completely randomly.
Pair Corralation between OneSpaWorld Holdings and Hasbro
Considering the 90-day investment horizon OneSpaWorld Holdings is expected to generate 1.1 times more return on investment than Hasbro. However, OneSpaWorld Holdings is 1.1 times more volatile than Hasbro Inc. It trades about 0.24 of its potential returns per unit of risk. Hasbro Inc is currently generating about -0.13 per unit of risk. If you would invest 1,686 in OneSpaWorld Holdings on September 13, 2024 and sell it today you would earn a total of 340.00 from holding OneSpaWorld Holdings or generate 20.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
OneSpaWorld Holdings vs. Hasbro Inc
Performance |
| Timeline |
| OneSpaWorld Holdings |
| Hasbro Inc |
OneSpaWorld Holdings and Hasbro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OneSpaWorld Holdings and Hasbro
The main advantage of trading using opposite OneSpaWorld Holdings and Hasbro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OneSpaWorld Holdings position performs unexpectedly, Hasbro 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 Hasbro will offset losses from the drop in Hasbro's long position.| OneSpaWorld Holdings vs. Escalade Incorporated | OneSpaWorld Holdings vs. Johnson Outdoors | OneSpaWorld Holdings vs. Clarus Corp | OneSpaWorld Holdings vs. Six Flags Entertainment |
| Hasbro vs. Clarus Corp | Hasbro vs. Johnson Outdoors | Hasbro vs. JAKKS Pacific | Hasbro 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Stocks Directory Find actively traded stocks across global markets |