Correlation Between SEAS Old and Six Flags
Can any of the company-specific risk be diversified away by investing in both SEAS Old and Six Flags 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 SEAS Old and Six Flags into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SEAS Old and Six Flags Entertainment, you can compare the effects of market volatilities on SEAS Old and Six Flags 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 SEAS Old with a short position of Six Flags. Check out your portfolio center. Please also check ongoing floating volatility patterns of SEAS Old and Six Flags.
Diversification Opportunities for SEAS Old and Six Flags
Weak diversification
The 3 months correlation between SEAS and Six is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding SEAS Old and Six Flags Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Six Flags Entertainment and SEAS Old 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 SEAS Old are associated (or correlated) with Six Flags. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Six Flags Entertainment has no effect on the direction of SEAS Old i.e., SEAS Old and Six Flags go up and down completely randomly.
Pair Corralation between SEAS Old and Six Flags
Given the investment horizon of 90 days SEAS Old is expected to under-perform the Six Flags. In addition to that, SEAS Old is 1.13 times more volatile than Six Flags Entertainment. It trades about -0.03 of its total potential returns per unit of risk. Six Flags Entertainment is currently generating about 0.02 per unit of volatility. If you would invest 3,861 in Six Flags Entertainment on October 20, 2024 and sell it today you would earn a total of 577.00 from holding Six Flags Entertainment or generate 14.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 24.65% |
| Values | Daily Returns |
SEAS Old vs. Six Flags Entertainment
Performance |
| Timeline |
| SEAS Old |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Six Flags Entertainment |
SEAS Old and Six Flags Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SEAS Old and Six Flags
The main advantage of trading using opposite SEAS Old and Six Flags positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SEAS Old position performs unexpectedly, Six Flags 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 Six Flags will offset losses from the drop in Six Flags' long position.| SEAS Old vs. JAKKS Pacific | SEAS Old vs. OneSpaWorld Holdings | SEAS Old vs. Clarus Corp | SEAS Old vs. Six Flags Entertainment |
| Six Flags vs. Planet Fitness | Six Flags vs. Madison Square Garden | Six Flags vs. Mattel Inc | Six Flags vs. Johnson Outdoors |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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