Correlation Between SeaWorld Entertainment and Acushnet Holdings
Can any of the company-specific risk be diversified away by investing in both SeaWorld Entertainment and Acushnet Holdings 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 Acushnet Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SeaWorld Entertainment and Acushnet Holdings Corp, you can compare the effects of market volatilities on SeaWorld Entertainment and Acushnet Holdings 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 Acushnet Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of SeaWorld Entertainment and Acushnet Holdings.
Diversification Opportunities for SeaWorld Entertainment and Acushnet Holdings
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SeaWorld and Acushnet is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SeaWorld Entertainment and Acushnet Holdings Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acushnet Holdings Corp 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 Acushnet Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acushnet Holdings Corp has no effect on the direction of SeaWorld Entertainment i.e., SeaWorld Entertainment and Acushnet Holdings go up and down completely randomly.
Pair Corralation between SeaWorld Entertainment and Acushnet Holdings
If you would invest 6,636 in Acushnet Holdings Corp on August 24, 2024 and sell it today you would earn a total of 503.00 from holding Acushnet Holdings Corp or generate 7.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 1.56% |
| Values | Daily Returns |
SeaWorld Entertainment vs. Acushnet Holdings Corp
Performance |
| Timeline |
| SeaWorld Entertainment |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Acushnet Holdings Corp |
SeaWorld Entertainment and Acushnet Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SeaWorld Entertainment and Acushnet Holdings
The main advantage of trading using opposite SeaWorld Entertainment and Acushnet Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SeaWorld Entertainment position performs unexpectedly, Acushnet Holdings 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 Acushnet Holdings will offset losses from the drop in Acushnet Holdings' long position.| SeaWorld Entertainment vs. JAKKS Pacific | SeaWorld Entertainment vs. OneSpaWorld Holdings | SeaWorld Entertainment vs. Clarus Corp | SeaWorld Entertainment vs. Six Flags Entertainment |
| Acushnet Holdings vs. Bowlero Corp | Acushnet Holdings vs. YETI Holdings | Acushnet Holdings vs. Madison Square Garden | Acushnet Holdings vs. Six Flags Entertainment |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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