Correlation Between Lees Pharmaceutical and Mattel
Can any of the company-specific risk be diversified away by investing in both Lees Pharmaceutical 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 Lees Pharmaceutical and Mattel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lees Pharmaceutical Holdings and Mattel Inc, you can compare the effects of market volatilities on Lees Pharmaceutical 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 Lees Pharmaceutical with a short position of Mattel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lees Pharmaceutical and Mattel.
Diversification Opportunities for Lees Pharmaceutical and Mattel
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Lees and Mattel is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Lees Pharmaceutical Holdings and Mattel Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mattel Inc and Lees Pharmaceutical 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 Lees Pharmaceutical Holdings 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 Lees Pharmaceutical i.e., Lees Pharmaceutical and Mattel go up and down completely randomly.
Pair Corralation between Lees Pharmaceutical and Mattel
If you would invest 1,783 in Mattel Inc on September 1, 2024 and sell it today you would earn a total of 119.00 from holding Mattel Inc or generate 6.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 0.79% |
| Values | Daily Returns |
Lees Pharmaceutical Holdings vs. Mattel Inc
Performance |
| Timeline |
| Lees Pharmaceutical |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Mattel Inc |
Lees Pharmaceutical and Mattel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lees Pharmaceutical and Mattel
The main advantage of trading using opposite Lees Pharmaceutical and Mattel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lees Pharmaceutical 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.| Lees Pharmaceutical vs. Brunswick | Lees Pharmaceutical vs. Freedom Internet Group | Lees Pharmaceutical vs. Reservoir Media | Lees Pharmaceutical vs. Sphere Entertainment Co |
| 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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