Correlation Between Mattel and Plby
Can any of the company-specific risk be diversified away by investing in both Mattel and Plby 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 Plby into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mattel Inc and Plby Group, you can compare the effects of market volatilities on Mattel and Plby 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 Plby. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mattel and Plby.
Diversification Opportunities for Mattel and Plby
Average diversification
The 3 months correlation between Mattel and Plby is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Mattel Inc and Plby Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Plby Group 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 Plby. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Plby Group has no effect on the direction of Mattel i.e., Mattel and Plby go up and down completely randomly.
Pair Corralation between Mattel and Plby
Considering the 90-day investment horizon Mattel Inc is expected to generate 0.33 times more return on investment than Plby. However, Mattel Inc is 3.06 times less risky than Plby. It trades about 0.02 of its potential returns per unit of risk. Plby Group is currently generating about -0.01 per unit of risk. If you would invest 1,739 in Mattel Inc on September 2, 2024 and sell it today you would earn a total of 163.00 from holding Mattel Inc or generate 9.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mattel Inc vs. Plby Group
Performance |
| Timeline |
| Mattel Inc |
| Plby Group |
Mattel and Plby Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mattel and Plby
The main advantage of trading using opposite Mattel and Plby positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mattel position performs unexpectedly, Plby 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 Plby will offset losses from the drop in Plby's long position.| Mattel vs. LCI Industries | Mattel vs. MCBC Holdings | Mattel vs. Winnebago Industries | Mattel vs. Thor Industries |
| Plby vs. Purecycle Technologies Holdings | Plby vs. Dolphin Entertainment | Plby vs. Hall of Fame | Plby vs. Funko Inc |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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