Correlation Between Saratoga Investment and Funko
Can any of the company-specific risk be diversified away by investing in both Saratoga Investment 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 Saratoga Investment and Funko into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Saratoga Investment Corp and Funko Inc, you can compare the effects of market volatilities on Saratoga Investment 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 Saratoga Investment with a short position of Funko. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saratoga Investment and Funko.
Diversification Opportunities for Saratoga Investment and Funko
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Saratoga and Funko is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Saratoga Investment Corp and Funko Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Funko Inc and Saratoga Investment 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 Saratoga Investment Corp 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 Saratoga Investment i.e., Saratoga Investment and Funko go up and down completely randomly.
Pair Corralation between Saratoga Investment and Funko
Considering the 90-day investment horizon Saratoga Investment is expected to generate 7.49 times less return on investment than Funko. But when comparing it to its historical volatility, Saratoga Investment Corp is 3.05 times less risky than Funko. It trades about 0.12 of its potential returns per unit of risk. Funko Inc is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 573.00 in Funko Inc on February 6, 2024 and sell it today you would earn a total of 88.00 from holding Funko Inc or generate 15.36% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Saratoga Investment Corp vs. Funko Inc
Performance |
Timeline |
Saratoga Investment Corp |
Funko Inc |
Saratoga Investment and Funko Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Saratoga Investment and Funko
The main advantage of trading using opposite Saratoga Investment and Funko positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saratoga Investment 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.Saratoga Investment vs. Visa Class A | Saratoga Investment vs. Deutsche Bank AG | Saratoga Investment vs. Dynex Capital |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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