Correlation Between 694308HH3 and Hasbro

Can any of the company-specific risk be diversified away by investing in both 694308HH3 and Hasbro 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 694308HH3 and Hasbro into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between US694308HH37 and Hasbro Inc, you can compare the effects of market volatilities on 694308HH3 and Hasbro 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 694308HH3 with a short position of Hasbro. Check out your portfolio center. Please also check ongoing floating volatility patterns of 694308HH3 and Hasbro.

Diversification Opportunities for 694308HH3 and Hasbro

0.41

Correlation Coefficient

694308HH3  Hasbro

Very weak diversification

The 3 months correlation between 694308HH3 and Hasbro is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding US694308HH37 and Hasbro Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hasbro Inc and 694308HH3 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 US694308HH37 are associated (or correlated) with Hasbro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hasbro Inc has no effect on the direction of 694308HH3 i.e., 694308HH3 and Hasbro go up and down completely randomly.

Pair Corralation between 694308HH3 and Hasbro

Assuming the 90 days trading horizon US694308HH37 is expected to generate 0.54 times more return on investment than Hasbro. However, US694308HH37 is 1.84 times less risky than Hasbro. It trades about -0.08 of its potential returns per unit of risk. Hasbro Inc is currently generating about -0.32 per unit of risk. If you would invest  8,711  in US694308HH37 on September 24, 2024 and sell it today you would lose (104.00) from holding US694308HH37 or give up 1.19% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	75.0%
Values	Daily Returns

US694308HH37  vs.  Hasbro Inc

US694308HH37

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days US694308HH37 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, 694308HH3 is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Hasbro Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Hasbro Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in January 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with 694308HH3 and Hasbro

The main advantage of trading using opposite 694308HH3 and Hasbro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 694308HH3 position performs unexpectedly, Hasbro 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 Hasbro will offset losses from the drop in Hasbro's long position.

The idea behind US694308HH37 and Hasbro 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.

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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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.