Correlation Between JAKKS Pacific and Kohls

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

By analyzing existing cross correlation between JAKKS Pacific and Kohls, you can compare the effects of market volatilities on JAKKS Pacific and Kohls 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 Kohls. Check out your portfolio center. Please also check ongoing floating volatility patterns of JAKKS Pacific and Kohls.

Diversification Opportunities for JAKKS Pacific and Kohls

-0.18

Correlation Coefficient

JAKKS Pacific  Kohls

Good diversification

The 3 months correlation between JAKKS and Kohls is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding JAKKS Pacific and Kohls in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kohls 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 Kohls. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kohls has no effect on the direction of JAKKS Pacific i.e., JAKKS Pacific and Kohls go up and down completely randomly.

Pair Corralation between JAKKS Pacific and Kohls

Given the investment horizon of 90 days JAKKS Pacific is expected to under-perform the Kohls. But the stock apears to be less risky and, when comparing its historical volatility, JAKKS Pacific is 1.89 times less risky than Kohls. The stock trades about -0.02 of its potential returns per unit of risk. The Kohls is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest  643.00  in Kohls on May 7, 2025 and sell it today you would earn a total of  496.00  from holding Kohls or generate 77.14% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.39%
Values	Daily Returns

JAKKS Pacific  vs.  Kohls

JAKKS Pacific

Risk-Adjusted Performance

Very Weak

Over the last 90 days JAKKS Pacific has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent forward-looking signals, JAKKS Pacific is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Kohls

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Kohls are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unfluctuating basic indicators, Kohls unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with JAKKS Pacific and Kohls

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

The idea behind JAKKS Pacific and Kohls 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.