Correlation Between Six Flags and American Outdoor
Can any of the company-specific risk be diversified away by investing in both Six Flags and American Outdoor 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 Six Flags and American Outdoor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Six Flags Entertainment and American Outdoor Brands, you can compare the effects of market volatilities on Six Flags and American Outdoor 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 Six Flags with a short position of American Outdoor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Six Flags and American Outdoor.
Diversification Opportunities for Six Flags and American Outdoor
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Six and American is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Six Flags Entertainment and American Outdoor Brands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Outdoor Brands and Six Flags 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 Six Flags Entertainment are associated (or correlated) with American Outdoor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Outdoor Brands has no effect on the direction of Six Flags i.e., Six Flags and American Outdoor go up and down completely randomly.
Pair Corralation between Six Flags and American Outdoor
If you would invest 935.00 in American Outdoor Brands on August 24, 2024 and sell it today you would earn a total of 23.00 from holding American Outdoor Brands or generate 2.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.35% |
| Values | Daily Returns |
Six Flags Entertainment vs. American Outdoor Brands
Performance |
| Timeline |
| Six Flags Entertainment |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| American Outdoor Brands |
Six Flags and American Outdoor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Six Flags and American Outdoor
The main advantage of trading using opposite Six Flags and American Outdoor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Six Flags position performs unexpectedly, American Outdoor 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 American Outdoor will offset losses from the drop in American Outdoor's long position.| Six Flags vs. JAKKS Pacific | Six Flags vs. OneSpaWorld Holdings | Six Flags vs. Clarus Corp | Six Flags vs. Six Flags Entertainment |
| American Outdoor vs. Clarus Corp | American Outdoor vs. Escalade Incorporated | American Outdoor vs. Johnson Outdoors | American Outdoor vs. JAKKS Pacific |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |