Correlation Between Funko and AMCON Distributing
Can any of the company-specific risk be diversified away by investing in both Funko and AMCON Distributing 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 Funko and AMCON Distributing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Funko Inc and AMCON Distributing, you can compare the effects of market volatilities on Funko and AMCON Distributing 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 Funko with a short position of AMCON Distributing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Funko and AMCON Distributing.
Diversification Opportunities for Funko and AMCON Distributing
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Funko and AMCON is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Funko Inc and AMCON Distributing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMCON Distributing and Funko 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 Funko Inc are associated (or correlated) with AMCON Distributing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMCON Distributing has no effect on the direction of Funko i.e., Funko and AMCON Distributing go up and down completely randomly.
Pair Corralation between Funko and AMCON Distributing
Given the investment horizon of 90 days Funko Inc is expected to under-perform the AMCON Distributing. In addition to that, Funko is 2.04 times more volatile than AMCON Distributing. It trades about -0.02 of its total potential returns per unit of risk. AMCON Distributing is currently generating about 0.03 per unit of volatility. If you would invest 11,263 in AMCON Distributing on May 30, 2025 and sell it today you would earn a total of 323.00 from holding AMCON Distributing or generate 2.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Funko Inc vs. AMCON Distributing
Performance |
| Timeline |
| Funko Inc |
| AMCON Distributing |
Funko and AMCON Distributing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Funko and AMCON Distributing
The main advantage of trading using opposite Funko and AMCON Distributing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Funko position performs unexpectedly, AMCON Distributing 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 AMCON Distributing will offset losses from the drop in AMCON Distributing's long position.The idea behind Funko Inc and AMCON Distributing 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.| AMCON Distributing vs. The Chefs Warehouse | AMCON Distributing vs. G Willi Food International | AMCON Distributing vs. SpartanNash Co | AMCON Distributing vs. Calavo Growers |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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