Correlation Between Acushnet Holdings and Mattel
Can any of the company-specific risk be diversified away by investing in both Acushnet Holdings 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 Acushnet Holdings and Mattel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Acushnet Holdings Corp and Mattel Inc, you can compare the effects of market volatilities on Acushnet Holdings 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 Acushnet Holdings with a short position of Mattel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acushnet Holdings and Mattel.
Diversification Opportunities for Acushnet Holdings and Mattel
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Acushnet and Mattel is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Acushnet Holdings Corp and Mattel Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mattel Inc and Acushnet Holdings 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 Acushnet Holdings 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 Acushnet Holdings i.e., Acushnet Holdings and Mattel go up and down completely randomly.
Pair Corralation between Acushnet Holdings and Mattel
Given the investment horizon of 90 days Acushnet Holdings Corp is expected to generate 0.96 times more return on investment than Mattel. However, Acushnet Holdings Corp is 1.04 times less risky than Mattel. It trades about 0.06 of its potential returns per unit of risk. Mattel Inc is currently generating about 0.0 per unit of risk. If you would invest 4,560 in Acushnet Holdings Corp on October 20, 2024 and sell it today you would earn a total of 2,813 from holding Acushnet Holdings Corp or generate 61.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Acushnet Holdings Corp vs. Mattel Inc
Performance |
| Timeline |
| Acushnet Holdings Corp |
| Mattel Inc |
Acushnet Holdings and Mattel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Acushnet Holdings and Mattel
The main advantage of trading using opposite Acushnet Holdings and Mattel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Acushnet Holdings 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.| Acushnet Holdings vs. YETI Holdings | Acushnet Holdings vs. Madison Square Garden | Acushnet Holdings vs. Six Flags Entertainment | Acushnet Holdings vs. Johnson Outdoors |
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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