Correlation Between World Wrestling and Roku
Can any of the company-specific risk be diversified away by investing in both World Wrestling and Roku 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 World Wrestling and Roku into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between World Wrestling Entertainment and Roku Inc, you can compare the effects of market volatilities on World Wrestling and Roku 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 World Wrestling with a short position of Roku. Check out your portfolio center. Please also check ongoing floating volatility patterns of World Wrestling and Roku.
Diversification Opportunities for World Wrestling and Roku
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between World and Roku is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding World Wrestling Entertainment and Roku Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Roku Inc and World Wrestling 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 World Wrestling Entertainment are associated (or correlated) with Roku. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Roku Inc has no effect on the direction of World Wrestling i.e., World Wrestling and Roku go up and down completely randomly.
Pair Corralation between World Wrestling and Roku
If you would invest 10,642 in World Wrestling Entertainment on August 30, 2024 and sell it today you would earn a total of 0.00 from holding World Wrestling Entertainment or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 2.33% |
| Values | Daily Returns |
World Wrestling Entertainment vs. Roku Inc
Performance |
| Timeline |
| World Wrestling Ente |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Roku Inc |
World Wrestling and Roku Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with World Wrestling and Roku
The main advantage of trading using opposite World Wrestling and Roku positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if World Wrestling position performs unexpectedly, Roku 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 Roku will offset losses from the drop in Roku's long position.| World Wrestling vs. Liberty Media | World Wrestling vs. Live Nation Entertainment | World Wrestling vs. Madison Square Garden | World Wrestling vs. Warner Music Group |
| Roku vs. Walt Disney | Roku vs. AMC Entertainment Holdings | Roku vs. Paramount Global Class | Roku vs. Warner Bros Discovery |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Stocks Directory Find actively traded stocks across global markets | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |