Correlation Between Hasbro and Mechel OAO
Can any of the company-specific risk be diversified away by investing in both Hasbro and Mechel OAO 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 Hasbro and Mechel OAO into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hasbro Inc and Mechel OAO, you can compare the effects of market volatilities on Hasbro and Mechel OAO 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 Hasbro with a short position of Mechel OAO. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hasbro and Mechel OAO.
Diversification Opportunities for Hasbro and Mechel OAO
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Hasbro and Mechel is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Hasbro Inc and Mechel OAO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mechel OAO and Hasbro 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 Hasbro Inc are associated (or correlated) with Mechel OAO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mechel OAO has no effect on the direction of Hasbro i.e., Hasbro and Mechel OAO go up and down completely randomly.
Pair Corralation between Hasbro and Mechel OAO
If you would invest (100.00) in Mechel OAO on September 4, 2024 and sell it today you would earn a total of 100.00 from holding Mechel OAO or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 0.0% |
| Values | Daily Returns |
Hasbro Inc vs. Mechel OAO
Performance |
| Timeline |
| Hasbro Inc |
| Mechel OAO |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Hasbro and Mechel OAO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hasbro and Mechel OAO
The main advantage of trading using opposite Hasbro and Mechel OAO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hasbro position performs unexpectedly, Mechel OAO 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 Mechel OAO will offset losses from the drop in Mechel OAO's long position.| Hasbro vs. Thor Industries | Hasbro vs. BRP Inc | Hasbro vs. EZGO Technologies | Hasbro vs. Polaris Industries |
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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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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