Correlation Between SeaWorld Entertainment and F45 Training

Can any of the company-specific risk be diversified away by investing in both SeaWorld Entertainment and F45 Training 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 SeaWorld Entertainment and F45 Training into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between SeaWorld Entertainment and F45 Training Holdings, you can compare the effects of market volatilities on SeaWorld Entertainment and F45 Training 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 SeaWorld Entertainment with a short position of F45 Training. Check out your portfolio center. Please also check ongoing floating volatility patterns of SeaWorld Entertainment and F45 Training.

Diversification Opportunities for SeaWorld Entertainment and F45 Training

0.15

Correlation Coefficient

SeaWorld Entertainment  F45 Training

Average diversification

The 3 months correlation between SeaWorld and F45 is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding SeaWorld Entertainment and F45 Training Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on F45 Training Holdings and SeaWorld Entertainment 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 SeaWorld Entertainment are associated (or correlated) with F45 Training. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of F45 Training Holdings has no effect on the direction of SeaWorld Entertainment i.e., SeaWorld Entertainment and F45 Training go up and down completely randomly.

Pair Corralation between SeaWorld Entertainment and F45 Training

If you would invest  57.00  in F45 Training Holdings on September 3, 2024 and sell it today you would earn a total of  0.00  from holding F45 Training Holdings or generate 0.0% return on investment over 90 days.

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

SeaWorld Entertainment  vs.  F45 Training Holdings

SeaWorld Entertainment

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days SeaWorld Entertainment has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, SeaWorld Entertainment is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

F45 Training Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days F45 Training Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable essential indicators, F45 Training is not utilizing all of its potentials. The recent stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with SeaWorld Entertainment and F45 Training

The main advantage of trading using opposite SeaWorld Entertainment and F45 Training positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SeaWorld Entertainment position performs unexpectedly, F45 Training 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 F45 Training will offset losses from the drop in F45 Training's long position.

The idea behind SeaWorld Entertainment and F45 Training Holdings 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.