Correlation Between Canlan Ice and Mattel
Can any of the company-specific risk be diversified away by investing in both Canlan Ice 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 Canlan Ice and Mattel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Canlan Ice Sports and Mattel Inc, you can compare the effects of market volatilities on Canlan Ice 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 Canlan Ice with a short position of Mattel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canlan Ice and Mattel.
Diversification Opportunities for Canlan Ice and Mattel
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Canlan and Mattel is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Canlan Ice Sports and Mattel Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mattel Inc and Canlan Ice 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 Canlan Ice Sports 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 Canlan Ice i.e., Canlan Ice and Mattel go up and down completely randomly.
Pair Corralation between Canlan Ice and Mattel
If you would invest 1,773 in Mattel Inc on November 3, 2024 and sell it today you would earn a total of 98.50 from holding Mattel Inc or generate 5.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Canlan Ice Sports vs. Mattel Inc
Performance |
| Timeline |
| Canlan Ice Sports |
| Mattel Inc |
Canlan Ice and Mattel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canlan Ice and Mattel
The main advantage of trading using opposite Canlan Ice and Mattel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canlan Ice 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.| Canlan Ice vs. Highway Holdings Limited | Canlan Ice vs. ioneer Ltd American | Canlan Ice vs. Summit Materials | Canlan Ice vs. The Coca Cola |
| 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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