Correlation Between Takung Art and Funko

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

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

Diversification Opportunities for Takung Art and Funko

0.0

Correlation Coefficient

Takung Art  Funko

Pay attention - limited upside

The 3 months correlation between Takung and Funko is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Takung Art Co and Funko Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Funko Inc and Takung Art 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 Takung Art Co are associated (or correlated) with Funko. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Funko Inc has no effect on the direction of Takung Art i.e., Takung Art and Funko go up and down completely randomly.

Pair Corralation between Takung Art and Funko

If you would invest  1,033  in Funko Inc on September 2, 2024 and sell it today you would earn a total of  142.00  from holding Funko Inc or generate 13.75% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.56%
Values	Daily Returns

Takung Art Co  vs.  Funko Inc

Takung Art

Risk-Adjusted Performance

0 of 100

Very Weak

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

Funko Inc

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Funko Inc are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating forward-looking signals, Funko displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Takung Art and Funko

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

The idea behind Takung Art Co and Funko Inc 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.

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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.