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
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Clarus and Mattel is 0.28. 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 generate 1.22 times more return on investment than Mattel. However, Clarus Corp is 1.22 times more volatile than Mattel Inc. It trades about 0.12 of its potential returns per unit of risk. Mattel Inc is currently generating about 0.07 per unit of risk. If you would invest 408.00 in Clarus Corp on August 24, 2024 and sell it today you would earn a total of 30.00 from holding Clarus Corp or generate 7.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| 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. Vista Outdoor | Clarus Corp vs. Six Flags Entertainment | Clarus Corp vs. Canlan Ice Sports | Clarus Corp vs. OneSpaWorld Holdings |
| Mattel vs. Vista Outdoor | Mattel vs. Six Flags Entertainment | Mattel vs. Canlan Ice Sports | Mattel vs. OneSpaWorld Holdings |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |