Correlation Between JAKKS Pacific and Studio City
Can any of the company-specific risk be diversified away by investing in both JAKKS Pacific and Studio City 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 Studio City into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JAKKS Pacific and Studio City International, you can compare the effects of market volatilities on JAKKS Pacific and Studio City 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 Studio City. Check out your portfolio center. Please also check ongoing floating volatility patterns of JAKKS Pacific and Studio City.
Diversification Opportunities for JAKKS Pacific and Studio City
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between JAKKS and Studio is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding JAKKS Pacific and Studio City International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Studio City International 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 Studio City. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Studio City International has no effect on the direction of JAKKS Pacific i.e., JAKKS Pacific and Studio City go up and down completely randomly.
Pair Corralation between JAKKS Pacific and Studio City
Given the investment horizon of 90 days JAKKS Pacific is expected to under-perform the Studio City. But the stock apears to be less risky and, when comparing its historical volatility, JAKKS Pacific is 2.37 times less risky than Studio City. The stock trades about -0.01 of its potential returns per unit of risk. The Studio City International is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 393.00 in Studio City International on October 7, 2025 and sell it today you would lose (40.00) from holding Studio City International or give up 10.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JAKKS Pacific vs. Studio City International
Performance |
| Timeline |
| JAKKS Pacific |
| Studio City International |
JAKKS Pacific and Studio City Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JAKKS Pacific and Studio City
The main advantage of trading using opposite JAKKS Pacific and Studio City positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JAKKS Pacific position performs unexpectedly, Studio City 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 Studio City will offset losses from the drop in Studio City's long position.| JAKKS Pacific vs. Funko Inc | JAKKS Pacific vs. Hamilton Beach Brands | JAKKS Pacific vs. Escalade Incorporated | JAKKS Pacific vs. Golden Heaven Group |
| Studio City vs. Inspired Entertainment | Studio City vs. Designer Brands | Studio City vs. Baozun Inc | Studio City vs. Flexsteel Industries |
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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