Correlation Between Hasbro and CSW Industrials,

Can any of the company-specific risk be diversified away by investing in both Hasbro and CSW Industrials, 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 Hasbro and CSW Industrials, into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Hasbro Inc and CSW Industrials,, you can compare the effects of market volatilities on Hasbro and CSW Industrials, 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 Hasbro with a short position of CSW Industrials,. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hasbro and CSW Industrials,.

Diversification Opportunities for Hasbro and CSW Industrials,

-0.68

Correlation Coefficient

Hasbro  CSW Industrials,

Excellent diversification

The 3 months correlation between Hasbro and CSW is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Hasbro Inc and CSW Industrials, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSW Industrials, and Hasbro 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 Hasbro Inc are associated (or correlated) with CSW Industrials,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSW Industrials, has no effect on the direction of Hasbro i.e., Hasbro and CSW Industrials, go up and down completely randomly.

Pair Corralation between Hasbro and CSW Industrials,

Considering the 90-day investment horizon Hasbro Inc is expected to generate 0.74 times more return on investment than CSW Industrials,. However, Hasbro Inc is 1.36 times less risky than CSW Industrials,. It trades about 0.2 of its potential returns per unit of risk. CSW Industrials, is currently generating about -0.17 per unit of risk. If you would invest  6,489  in Hasbro Inc on May 11, 2025 and sell it today you would earn a total of  1,260  from holding Hasbro Inc or generate 19.42% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Hasbro Inc  vs.  CSW Industrials,

Hasbro Inc

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Hasbro Inc are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Hasbro unveiled solid returns over the last few months and may actually be approaching a breakup point.

CSW Industrials,

Risk-Adjusted Performance

Weakest

Over the last 90 days CSW Industrials, has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in September 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Pair Trading with Hasbro and CSW Industrials,

The main advantage of trading using opposite Hasbro and CSW Industrials, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hasbro position performs unexpectedly, CSW Industrials, 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 CSW Industrials, will offset losses from the drop in CSW Industrials,'s long position.

The idea behind Hasbro Inc and CSW Industrials, 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.