Correlation Between Clarus Corp and Mattel
Can any of the company-specific risk be diversified away by investing in both Clarus Corp and Mattel 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 Clarus Corp and Mattel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Clarus Corp and Mattel Inc, you can compare the effects of market volatilities on Clarus Corp and Mattel 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 Clarus Corp with a short position of Mattel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clarus Corp and Mattel.
Diversification Opportunities for Clarus Corp and Mattel
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Clarus and Mattel is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Clarus Corp and Mattel Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mattel Inc and Clarus Corp 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 Clarus Corp are associated (or correlated) with Mattel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mattel Inc has no effect on the direction of Clarus Corp i.e., Clarus Corp and Mattel go up and down completely randomly.
Pair Corralation between Clarus Corp and Mattel
Given the investment horizon of 90 days Clarus Corp is expected to under-perform the Mattel. In addition to that, Clarus Corp is 1.71 times more volatile than Mattel Inc. It trades about 0.0 of its total potential returns per unit of risk. Mattel Inc is currently generating about 0.01 per unit of volatility. If you would invest 1,881 in Mattel Inc on November 3, 2024 and sell it today you would lose (17.00) from holding Mattel Inc or give up 0.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Clarus Corp vs. Mattel Inc
Performance |
| Timeline |
| Clarus Corp |
| Mattel Inc |
Clarus Corp and Mattel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Clarus Corp and Mattel
The main advantage of trading using opposite Clarus Corp and Mattel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clarus Corp position performs unexpectedly, Mattel 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 Mattel will offset losses from the drop in Mattel's long position.| Clarus Corp vs. Johnson Outdoors | Clarus Corp vs. Escalade Incorporated | Clarus Corp vs. JAKKS Pacific | Clarus Corp vs. Six Flags Entertainment |
| Mattel vs. Funko Inc | Mattel vs. JAKKS Pacific | Mattel vs. Madison Square Garden | Mattel vs. Life Time Group |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |