Correlation Between United Parks and Hasbro
Can any of the company-specific risk be diversified away by investing in both United Parks 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 United Parks and Hasbro into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between United Parks Resorts and Hasbro Inc, you can compare the effects of market volatilities on United Parks 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 United Parks with a short position of Hasbro. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Parks and Hasbro.
Diversification Opportunities for United Parks and Hasbro
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between United and Hasbro is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding United Parks Resorts and Hasbro Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hasbro Inc and United Parks 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 United Parks Resorts 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 United Parks i.e., United Parks and Hasbro go up and down completely randomly.
Pair Corralation between United Parks and Hasbro
Given the investment horizon of 90 days United Parks is expected to generate 2.1 times less return on investment than Hasbro. In addition to that, United Parks is 1.12 times more volatile than Hasbro Inc. It trades about 0.01 of its total potential returns per unit of risk. Hasbro Inc is currently generating about 0.03 per unit of volatility. If you would invest 5,674 in Hasbro Inc on August 31, 2024 and sell it today you would earn a total of 841.00 from holding Hasbro Inc or generate 14.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
United Parks Resorts vs. Hasbro Inc
Performance |
| Timeline |
| United Parks Resorts |
| Hasbro Inc |
United Parks and Hasbro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Parks and Hasbro
The main advantage of trading using opposite United Parks and Hasbro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Parks 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.| United Parks vs. Amer Sports, | United Parks vs. Vista Outdoor | United Parks vs. Escalade Incorporated | United Parks vs. Funko Inc |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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