Correlation Between HomesToLife and Funko

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

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

Diversification Opportunities for HomesToLife and Funko

-0.38

Correlation Coefficient

HomesToLife  Funko

Very good diversification

The 3 months correlation between HomesToLife and Funko is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding HomesToLife and Funko Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Funko Inc and HomesToLife 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 HomesToLife are associated (or correlated) with Funko. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Funko Inc has no effect on the direction of HomesToLife i.e., HomesToLife and Funko go up and down completely randomly.

Pair Corralation between HomesToLife and Funko

Given the investment horizon of 90 days HomesToLife is expected to generate 1.35 times less return on investment than Funko. But when comparing it to its historical volatility, HomesToLife is 4.13 times less risky than Funko. It trades about 0.04 of its potential returns per unit of risk. Funko Inc is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  390.00  in Funko Inc on May 5, 2025 and sell it today you would lose (31.00) from holding Funko Inc or give up 7.95% of portfolio value over 90 days.

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

HomesToLife  vs.  Funko Inc

HomesToLife

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in HomesToLife are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy essential indicators, HomesToLife is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Funko Inc

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Funko Inc are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of very uncertain forward-looking signals, Funko may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with HomesToLife and Funko

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

The idea behind HomesToLife and Funko Inc 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.