Correlation Between JAKKS Pacific and Drive Shack

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both JAKKS Pacific and Drive Shack 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 JAKKS Pacific and Drive Shack into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JAKKS Pacific and Drive Shack, you can compare the effects of market volatilities on JAKKS Pacific and Drive Shack 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 JAKKS Pacific with a short position of Drive Shack. Check out your portfolio center. Please also check ongoing floating volatility patterns of JAKKS Pacific and Drive Shack.

Diversification Opportunities for JAKKS Pacific and Drive Shack

-0.3
  Correlation Coefficient

Very good diversification

The 3 months correlation between JAKKS and Drive is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding JAKKS Pacific and Drive Shack in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Drive Shack and JAKKS Pacific 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 JAKKS Pacific are associated (or correlated) with Drive Shack. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Drive Shack has no effect on the direction of JAKKS Pacific i.e., JAKKS Pacific and Drive Shack go up and down completely randomly.

Pair Corralation between JAKKS Pacific and Drive Shack

If you would invest  38.00  in Drive Shack on January 24, 2024 and sell it today you would earn a total of  0.00  from holding Drive Shack or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy5.0%
ValuesDaily Returns

JAKKS Pacific  vs.  Drive Shack

 Performance 
       Timeline  
JAKKS Pacific 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days JAKKS Pacific has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unfluctuating performance in the last few months, the Stock's forward-looking signals remain quite persistent which may send shares a bit higher in May 2024. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.
Drive Shack 

Risk-Adjusted Performance

0 of 100

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

JAKKS Pacific and Drive Shack Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with JAKKS Pacific and Drive Shack

The main advantage of trading using opposite JAKKS Pacific and Drive Shack positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JAKKS Pacific position performs unexpectedly, Drive Shack 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 Drive Shack will offset losses from the drop in Drive Shack's long position.
The idea behind JAKKS Pacific and Drive Shack 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.

Other Complementary Tools

Portfolio Backtesting
Avoid under-diversification and over-optimization by backtesting your portfolios
CEOs Directory
Screen CEOs from public companies around the world
Content Syndication
Quickly integrate customizable finance content to your own investment portal
Price Transformation
Use Price Transformation models to analyze the depth of different equity instruments across global markets
Sectors
List of equity sectors categorizing publicly traded companies based on their primary business activities
Top Crypto Exchanges
Search and analyze digital assets across top global cryptocurrency exchanges
Alpha Finder
Use alpha and beta coefficients to find investment opportunities after accounting for the risk
Funds Screener
Find actively-traded funds from around the world traded on over 30 global exchanges
Performance Analysis
Check effects of mean-variance optimization against your current asset allocation
Transaction History
View history of all your transactions and understand their impact on performance
Portfolio Dashboard
Portfolio dashboard that provides centralized access to all your investments