Correlation Between Vista Outdoor and Six Flags
Can any of the company-specific risk be diversified away by investing in both Vista Outdoor and Six Flags 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 Vista Outdoor and Six Flags into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vista Outdoor and Six Flags Entertainment, you can compare the effects of market volatilities on Vista Outdoor and Six Flags 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 Vista Outdoor with a short position of Six Flags. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vista Outdoor and Six Flags.
Diversification Opportunities for Vista Outdoor and Six Flags
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Vista and Six is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Vista Outdoor and Six Flags Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Six Flags Entertainment and Vista Outdoor 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 Vista Outdoor are associated (or correlated) with Six Flags. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Six Flags Entertainment has no effect on the direction of Vista Outdoor i.e., Vista Outdoor and Six Flags go up and down completely randomly.
Pair Corralation between Vista Outdoor and Six Flags
Given the investment horizon of 90 days Vista Outdoor is expected to generate 0.78 times more return on investment than Six Flags. However, Vista Outdoor is 1.28 times less risky than Six Flags. It trades about 0.13 of its potential returns per unit of risk. Six Flags Entertainment is currently generating about 0.03 per unit of risk. If you would invest 2,956 in Vista Outdoor on November 3, 2024 and sell it today you would earn a total of 1,507 from holding Vista Outdoor or generate 50.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 82.66% |
| Values | Daily Returns |
Vista Outdoor vs. Six Flags Entertainment
Performance |
| Timeline |
| Vista Outdoor |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Strong
| Six Flags Entertainment |
Vista Outdoor and Six Flags Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vista Outdoor and Six Flags
The main advantage of trading using opposite Vista Outdoor and Six Flags positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vista Outdoor position performs unexpectedly, Six Flags 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 Six Flags will offset losses from the drop in Six Flags' long position.| Vista Outdoor vs. Clarus Corp | Vista Outdoor vs. Johnson Outdoors | Vista Outdoor vs. Escalade Incorporated | Vista Outdoor vs. JAKKS Pacific |
| Six Flags vs. Planet Fitness | Six Flags vs. Madison Square Garden | Six Flags vs. Mattel Inc | Six Flags vs. Johnson Outdoors |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |