Correlation Between Hasbro and SmartSet Automation

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

By analyzing existing cross correlation between Hasbro Inc and SmartSet Automation LLC, you can compare the effects of market volatilities on Hasbro and SmartSet Automation 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 SmartSet Automation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hasbro and SmartSet Automation.

Diversification Opportunities for Hasbro and SmartSet Automation

-0.35

Correlation Coefficient

Hasbro  SmartSet Automation

Very good diversification

The 3 months correlation between Hasbro and SmartSet is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Hasbro Inc and SmartSet Automation LLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SmartSet Automation LLC 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 SmartSet Automation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SmartSet Automation LLC has no effect on the direction of Hasbro i.e., Hasbro and SmartSet Automation go up and down completely randomly.

Pair Corralation between Hasbro and SmartSet Automation

Considering the 90-day investment horizon Hasbro is expected to generate 1.78 times less return on investment than SmartSet Automation. But when comparing it to its historical volatility, Hasbro Inc is 9.81 times less risky than SmartSet Automation. It trades about 0.22 of its potential returns per unit of risk. SmartSet Automation LLC is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  0.26  in SmartSet Automation LLC on May 3, 2025 and sell it today you would lose (0.08) from holding SmartSet Automation LLC or give up 30.77% of portfolio value over 90 days.

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

Hasbro Inc  vs.  SmartSet Automation LLC

Hasbro Inc

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Hasbro Inc are ranked lower than 17 (%) 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.

SmartSet Automation LLC

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in SmartSet Automation LLC are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of rather conflicting fundamental indicators, SmartSet Automation exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Hasbro and SmartSet Automation

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

The idea behind Hasbro Inc and SmartSet Automation LLC 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.