Correlation Between Mattel and Genfit
Can any of the company-specific risk be diversified away by investing in both Mattel and Genfit 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 Mattel and Genfit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mattel Inc and Genfit, you can compare the effects of market volatilities on Mattel and Genfit 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 Mattel with a short position of Genfit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mattel and Genfit.
Diversification Opportunities for Mattel and Genfit
Poor diversification
The 3 months correlation between Mattel and Genfit is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Mattel Inc and Genfit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genfit and Mattel 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 Mattel Inc are associated (or correlated) with Genfit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genfit has no effect on the direction of Mattel i.e., Mattel and Genfit go up and down completely randomly.
Pair Corralation between Mattel and Genfit
Considering the 90-day investment horizon Mattel Inc is expected to generate 0.51 times more return on investment than Genfit. However, Mattel Inc is 1.97 times less risky than Genfit. It trades about -0.07 of its potential returns per unit of risk. Genfit is currently generating about -0.21 per unit of risk. If you would invest 1,938 in Mattel Inc on November 7, 2024 and sell it today you would lose (131.00) from holding Mattel Inc or give up 6.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mattel Inc vs. Genfit
Performance |
| Timeline |
| Mattel Inc |
| Genfit |
Mattel and Genfit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mattel and Genfit
The main advantage of trading using opposite Mattel and Genfit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mattel position performs unexpectedly, Genfit 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 Genfit will offset losses from the drop in Genfit's long position.| Mattel vs. Funko Inc | Mattel vs. JAKKS Pacific | Mattel vs. Madison Square Garden | Mattel vs. Life Time Group |
| Genfit vs. CytomX Therapeutics | Genfit vs. Instil Bio | Genfit vs. Spero Therapeutics | Genfit vs. Assembly Biosciences |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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