Correlation Between Funko and Sable Offshore

Can any of the company-specific risk be diversified away by investing in both Funko and Sable Offshore 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 Funko and Sable Offshore into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Funko Inc and Sable Offshore Corp, you can compare the effects of market volatilities on Funko and Sable Offshore 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 Funko with a short position of Sable Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Funko and Sable Offshore.

Diversification Opportunities for Funko and Sable Offshore

-0.1

Correlation Coefficient

Funko  Sable Offshore

Good diversification

The 3 months correlation between Funko and Sable is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Funko Inc and Sable Offshore Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sable Offshore Corp and Funko 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 Funko Inc are associated (or correlated) with Sable Offshore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sable Offshore Corp has no effect on the direction of Funko i.e., Funko and Sable Offshore go up and down completely randomly.

Pair Corralation between Funko and Sable Offshore

Given the investment horizon of 90 days Funko Inc is expected to generate 0.5 times more return on investment than Sable Offshore. However, Funko Inc is 2.01 times less risky than Sable Offshore. It trades about 0.22 of its potential returns per unit of risk. Sable Offshore Corp is currently generating about 0.04 per unit of risk. If you would invest  1,175  in Funko Inc on September 30, 2024 and sell it today you would earn a total of  149.00  from holding Funko Inc or generate 12.68% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Funko Inc  vs.  Sable Offshore Corp

Funko Inc

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Funko Inc are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating forward-looking signals, Funko may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Sable Offshore Corp

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Sable Offshore Corp are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak basic indicators, Sable Offshore may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Funko and Sable Offshore

The main advantage of trading using opposite Funko and Sable Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Funko position performs unexpectedly, Sable Offshore 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 Sable Offshore will offset losses from the drop in Sable Offshore's long position.

The idea behind Funko Inc and Sable Offshore Corp 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.

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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 CEOs Directory module to screen CEOs from public companies around the world.