Correlation Between YETI Holdings and Six Flags
Can any of the company-specific risk be diversified away by investing in both YETI Holdings 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 YETI Holdings and Six Flags into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between YETI Holdings and Six Flags Entertainment, you can compare the effects of market volatilities on YETI Holdings 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 YETI Holdings with a short position of Six Flags. Check out your portfolio center. Please also check ongoing floating volatility patterns of YETI Holdings and Six Flags.
Diversification Opportunities for YETI Holdings and Six Flags
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between YETI and Six is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding YETI Holdings 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 YETI Holdings 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 YETI Holdings 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 YETI Holdings i.e., YETI Holdings and Six Flags go up and down completely randomly.
Pair Corralation between YETI Holdings and Six Flags
Given the investment horizon of 90 days YETI Holdings is expected to generate 2.26 times less return on investment than Six Flags. In addition to that, YETI Holdings is 1.23 times more volatile than Six Flags Entertainment. It trades about 0.12 of its total potential returns per unit of risk. Six Flags Entertainment is currently generating about 0.32 per unit of volatility. If you would invest 3,937 in Six Flags Entertainment on August 24, 2024 and sell it today you would earn a total of 673.00 from holding Six Flags Entertainment or generate 17.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
YETI Holdings vs. Six Flags Entertainment
Performance |
| Timeline |
| YETI Holdings |
| Six Flags Entertainment |
YETI Holdings and Six Flags Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YETI Holdings and Six Flags
The main advantage of trading using opposite YETI Holdings and Six Flags positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YETI Holdings 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.| YETI Holdings vs. Acushnet Holdings Corp | YETI Holdings vs. Bowlero Corp | YETI Holdings vs. Madison Square Garden | YETI Holdings vs. Callaway Golf |
| 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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