Correlation Between Alphatec Holdings and Hasbro
Can any of the company-specific risk be diversified away by investing in both Alphatec Holdings 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 Alphatec Holdings and Hasbro into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alphatec Holdings and Hasbro Inc, you can compare the effects of market volatilities on Alphatec Holdings 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 Alphatec Holdings with a short position of Hasbro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alphatec Holdings and Hasbro.
Diversification Opportunities for Alphatec Holdings and Hasbro
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Alphatec and Hasbro is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Alphatec Holdings and Hasbro Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hasbro Inc and Alphatec Holdings 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 Alphatec Holdings 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 Alphatec Holdings i.e., Alphatec Holdings and Hasbro go up and down completely randomly.
Pair Corralation between Alphatec Holdings and Hasbro
Given the investment horizon of 90 days Alphatec Holdings is expected to generate 1.98 times more return on investment than Hasbro. However, Alphatec Holdings is 1.98 times more volatile than Hasbro Inc. It trades about 0.11 of its potential returns per unit of risk. Hasbro Inc is currently generating about 0.05 per unit of risk. If you would invest 565.00 in Alphatec Holdings on June 4, 2025 and sell it today you would earn a total of 1,003 from holding Alphatec Holdings or generate 177.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alphatec Holdings vs. Hasbro Inc
Performance |
| Timeline |
| Alphatec Holdings |
| Hasbro Inc |
Alphatec Holdings and Hasbro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alphatec Holdings and Hasbro
The main advantage of trading using opposite Alphatec Holdings and Hasbro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alphatec Holdings 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.| Alphatec Holdings vs. Orthofix Medical | Alphatec Holdings vs. Si Bone | Alphatec Holdings vs. Avanos Medical | Alphatec Holdings vs. AtriCure |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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