Correlation Between SINA and Hasbro

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

Diversification Opportunities for SINA and Hasbro

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between SINA and Hasbro is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SINA Corp. and Hasbro Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hasbro Inc and SINA 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 SINA Corporation 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 SINA i.e., SINA and Hasbro go up and down completely randomly.

Pair Corralation between SINA and Hasbro

If you would invest  5,028  in Hasbro Inc on December 29, 2023 and sell it today you would earn a total of  624.00  from holding Hasbro Inc or generate 12.41% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

SINA Corp.  vs.  Hasbro Inc

 Performance 
       Timeline  
SINA 

Risk-Adjusted Performance

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

Risk-Adjusted Performance

9 of 100

 
Low
 
High
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Hasbro Inc are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively conflicting basic indicators, Hasbro unveiled solid returns over the last few months and may actually be approaching a breakup point.

SINA and Hasbro Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with SINA and Hasbro

The main advantage of trading using opposite SINA and Hasbro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SINA 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 SINA Corporation 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.

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