Correlation Between Fair Isaac and Mattel
Can any of the company-specific risk be diversified away by investing in both Fair Isaac 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 Fair Isaac and Mattel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fair Isaac and Mattel Inc, you can compare the effects of market volatilities on Fair Isaac 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 Fair Isaac with a short position of Mattel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fair Isaac and Mattel.
Diversification Opportunities for Fair Isaac and Mattel
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Fair and Mattel is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Fair Isaac and Mattel Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mattel Inc and Fair Isaac 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 Fair Isaac 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 Fair Isaac i.e., Fair Isaac and Mattel go up and down completely randomly.
Pair Corralation between Fair Isaac and Mattel
Given the investment horizon of 90 days Fair Isaac is expected to under-perform the Mattel. In addition to that, Fair Isaac is 1.57 times more volatile than Mattel Inc. It trades about -0.17 of its total potential returns per unit of risk. Mattel Inc is currently generating about 0.24 per unit of volatility. 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 Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fair Isaac vs. Mattel Inc
Performance |
| Timeline |
| Fair Isaac |
| Mattel Inc |
Fair Isaac and Mattel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fair Isaac and Mattel
The main advantage of trading using opposite Fair Isaac and Mattel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fair Isaac 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.| Fair Isaac vs. SAP SE ADR | Fair Isaac vs. Tyler Technologies | Fair Isaac vs. Roper Technologies, | Fair Isaac vs. Cadence Design Systems |
| 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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