Correlation Between ENERGY and Funko
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By analyzing existing cross correlation between ENERGY TRANSFER OPER and Funko Inc, you can compare the effects of market volatilities on ENERGY 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 ENERGY with a short position of Funko. Check out your portfolio center. Please also check ongoing floating volatility patterns of ENERGY and Funko.
Diversification Opportunities for ENERGY and Funko
Good diversification
The 3 months correlation between ENERGY and Funko is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding ENERGY TRANSFER OPER and Funko Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Funko Inc and ENERGY 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 ENERGY TRANSFER OPER 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 ENERGY i.e., ENERGY and Funko go up and down completely randomly.
Pair Corralation between ENERGY and Funko
Assuming the 90 days trading horizon ENERGY is expected to generate 33.74 times less return on investment than Funko. But when comparing it to its historical volatility, ENERGY TRANSFER OPER is 3.91 times less risky than Funko. It trades about 0.01 of its potential returns per unit of risk. Funko Inc is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 676.00 in Funko Inc on September 3, 2024 and sell it today you would earn a total of 507.00 from holding Funko Inc or generate 75.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.98% |
| Values | Daily Returns |
ENERGY TRANSFER OPER vs. Funko Inc
Performance |
| Timeline |
| ENERGY TRANSFER OPER |
| Funko Inc |
ENERGY and Funko Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ENERGY and Funko
The main advantage of trading using opposite ENERGY and Funko positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ENERGY 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.The idea behind ENERGY TRANSFER OPER and Funko Inc pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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