Correlation Between Six Flags and Funko
Can any of the company-specific risk be diversified away by investing in both Six Flags and Funko 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 Funko 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 Funko Inc, you can compare the effects of market volatilities on Six Flags and Funko 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 Funko. Check out your portfolio center. Please also check ongoing floating volatility patterns of Six Flags and Funko.
Diversification Opportunities for Six Flags and Funko
Good diversification
The 3 months correlation between Six and Funko is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Six Flags Entertainment and Funko Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Funko Inc 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 Funko. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Funko Inc has no effect on the direction of Six Flags i.e., Six Flags and Funko go up and down completely randomly.
Pair Corralation between Six Flags and Funko
If you would invest 1,009 in Funko Inc on September 14, 2024 and sell it today you would earn a total of 162.00 from holding Funko Inc or generate 16.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Six Flags Entertainment vs. Funko Inc
Performance |
| Timeline |
| Six Flags Entertainment |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Funko Inc |
Six Flags and Funko Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Six Flags and Funko
The main advantage of trading using opposite Six Flags and Funko positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Six Flags position performs unexpectedly, Funko 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 Funko will offset losses from the drop in Funko's long position.| Six Flags vs. JAKKS Pacific | Six Flags vs. OneSpaWorld Holdings | Six Flags vs. Clarus Corp | Six Flags 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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