Correlation Between First Ship and Mattel
Can any of the company-specific risk be diversified away by investing in both First Ship 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 First Ship and Mattel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Ship Lease and Mattel Inc, you can compare the effects of market volatilities on First Ship 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 First Ship with a short position of Mattel. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Ship and Mattel.
Diversification Opportunities for First Ship and Mattel
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between First and Mattel is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding First Ship Lease and Mattel Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mattel Inc and First Ship 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 First Ship Lease 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 First Ship i.e., First Ship and Mattel go up and down completely randomly.
Pair Corralation between First Ship and Mattel
If you would invest 4.00 in First Ship Lease on October 17, 2024 and sell it today you would earn a total of 0.00 from holding First Ship Lease or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
First Ship Lease vs. Mattel Inc
Performance |
| Timeline |
| First Ship Lease |
| Mattel Inc |
First Ship and Mattel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Ship and Mattel
The main advantage of trading using opposite First Ship and Mattel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Ship 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.| First Ship vs. Vulcan Materials | First Ship vs. Codexis | First Ship vs. CF Industries Holdings | First Ship vs. Tencent Music 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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