Correlation Between Mattel and LandBridge Company
Can any of the company-specific risk be diversified away by investing in both Mattel and LandBridge Company 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 LandBridge Company into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mattel Inc and LandBridge Company LLC, you can compare the effects of market volatilities on Mattel and LandBridge Company 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 LandBridge Company. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mattel and LandBridge Company.
Diversification Opportunities for Mattel and LandBridge Company
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Mattel and LandBridge is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Mattel Inc and LandBridge Company LLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LandBridge Company 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 LandBridge Company. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LandBridge Company has no effect on the direction of Mattel i.e., Mattel and LandBridge Company go up and down completely randomly.
Pair Corralation between Mattel and LandBridge Company
Considering the 90-day investment horizon Mattel is expected to generate 9.1 times less return on investment than LandBridge Company. But when comparing it to its historical volatility, Mattel Inc is 2.23 times less risky than LandBridge Company. It trades about 0.03 of its potential returns per unit of risk. LandBridge Company LLC is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 5,148 in LandBridge Company LLC on September 13, 2024 and sell it today you would earn a total of 1,085 from holding LandBridge Company LLC or generate 21.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mattel Inc vs. LandBridge Company LLC
Performance |
| Timeline |
| Mattel Inc |
| LandBridge Company |
Mattel and LandBridge Company Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mattel and LandBridge Company
The main advantage of trading using opposite Mattel and LandBridge Company positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mattel position performs unexpectedly, LandBridge Company 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 LandBridge Company will offset losses from the drop in LandBridge Company's long position.| Mattel vs. Clarus Corp | Mattel vs. Escalade Incorporated | Mattel vs. Johnson Outdoors | Mattel vs. JAKKS Pacific |
| LandBridge Company vs. Mattel Inc | LandBridge Company vs. Canlan Ice Sports | LandBridge Company vs. Funko Inc | LandBridge Company vs. Playa Hotels Resorts |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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