Correlation Between HP and Mattel
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By analyzing existing cross correlation between HP Inc and Mattel 62 percent, you can compare the effects of market volatilities on HP 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 HP with a short position of Mattel. Check out your portfolio center. Please also check ongoing floating volatility patterns of HP and Mattel.
Diversification Opportunities for HP and Mattel
Excellent diversification
The 3 months correlation between HP and Mattel is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding HP Inc and Mattel 62 percent in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mattel 62 percent and HP 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 HP Inc 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 62 percent has no effect on the direction of HP i.e., HP and Mattel go up and down completely randomly.
Pair Corralation between HP and Mattel
Considering the 90-day investment horizon HP Inc is expected to generate 1.26 times more return on investment than Mattel. However, HP is 1.26 times more volatile than Mattel 62 percent. It trades about 0.04 of its potential returns per unit of risk. Mattel 62 percent is currently generating about 0.02 per unit of risk. If you would invest 2,853 in HP Inc on August 31, 2024 and sell it today you would earn a total of 690.00 from holding HP Inc or generate 24.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 97.33% |
| Values | Daily Returns |
HP Inc vs. Mattel 62 percent
Performance |
| Timeline |
| HP Inc |
| Mattel 62 percent |
HP and Mattel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HP and Mattel
The main advantage of trading using opposite HP and Mattel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HP 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.| HP vs. RLJ Lodging Trust | HP vs. Aquagold International | HP vs. Stepstone Group | HP vs. Morningstar Unconstrained Allocation |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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