Correlation Between Kartoon Studios, and Funko
Can any of the company-specific risk be diversified away by investing in both Kartoon Studios, 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 Kartoon Studios, and Funko into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kartoon Studios, and Funko Inc, you can compare the effects of market volatilities on Kartoon Studios, 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 Kartoon Studios, with a short position of Funko. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kartoon Studios, and Funko.
Diversification Opportunities for Kartoon Studios, and Funko
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kartoon and Funko is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Kartoon Studios, and Funko Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Funko Inc and Kartoon Studios, 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 Kartoon Studios, 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 Kartoon Studios, i.e., Kartoon Studios, and Funko go up and down completely randomly.
Pair Corralation between Kartoon Studios, and Funko
Given the investment horizon of 90 days Kartoon Studios, is expected to under-perform the Funko. In addition to that, Kartoon Studios, is 1.25 times more volatile than Funko Inc. It trades about -0.05 of its total potential returns per unit of risk. Funko Inc is currently generating about 0.01 per unit of volatility. If you would invest 1,303 in Funko Inc on August 31, 2024 and sell it today you would lose (128.00) from holding Funko Inc or give up 9.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kartoon Studios, vs. Funko Inc
Performance |
| Timeline |
| Kartoon Studios, |
| Funko Inc |
Kartoon Studios, and Funko Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kartoon Studios, and Funko
The main advantage of trading using opposite Kartoon Studios, and Funko positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kartoon Studios, 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.| Kartoon Studios, vs. Funko Inc | Kartoon Studios, vs. China Tontine Wines | Kartoon Studios, vs. Willamette Valley Vineyards | Kartoon Studios, vs. Brunswick |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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