Correlation Between SeaWorld Entertainment and Six Flags
Can any of the company-specific risk be diversified away by investing in both SeaWorld Entertainment 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 SeaWorld Entertainment and Six Flags into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SeaWorld Entertainment and Six Flags Entertainment, you can compare the effects of market volatilities on SeaWorld Entertainment 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 SeaWorld Entertainment with a short position of Six Flags. Check out your portfolio center. Please also check ongoing floating volatility patterns of SeaWorld Entertainment and Six Flags.
Diversification Opportunities for SeaWorld Entertainment and Six Flags
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between SeaWorld and Six is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding SeaWorld Entertainment 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 SeaWorld Entertainment 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 SeaWorld Entertainment 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 SeaWorld Entertainment i.e., SeaWorld Entertainment and Six Flags go up and down completely randomly.
Pair Corralation between SeaWorld Entertainment and Six Flags
If you would invest 4,211 in Six Flags Entertainment on August 28, 2024 and sell it today you would earn a total of 363.00 from holding Six Flags Entertainment or generate 8.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
SeaWorld Entertainment vs. Six Flags Entertainment
Performance |
| Timeline |
| SeaWorld Entertainment |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Six Flags Entertainment |
SeaWorld Entertainment and Six Flags Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SeaWorld Entertainment and Six Flags
The main advantage of trading using opposite SeaWorld Entertainment and Six Flags positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SeaWorld Entertainment 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.| SeaWorld Entertainment vs. JAKKS Pacific | SeaWorld Entertainment vs. OneSpaWorld Holdings | SeaWorld Entertainment vs. Clarus Corp | SeaWorld Entertainment 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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