Correlation Between Mattel and Southern BancShares
Can any of the company-specific risk be diversified away by investing in both Mattel and Southern BancShares 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 Southern BancShares into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mattel Inc and Southern BancShares PFD, you can compare the effects of market volatilities on Mattel and Southern BancShares 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 Southern BancShares. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mattel and Southern BancShares.
Diversification Opportunities for Mattel and Southern BancShares
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Mattel and Southern is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Mattel Inc and Southern BancShares PFD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Southern BancShares PFD 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 Southern BancShares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Southern BancShares PFD has no effect on the direction of Mattel i.e., Mattel and Southern BancShares go up and down completely randomly.
Pair Corralation between Mattel and Southern BancShares
If you would invest 1,773 in Mattel Inc on November 3, 2024 and sell it today you would earn a total of 98.50 from holding Mattel Inc or generate 5.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
Mattel Inc vs. Southern BancShares PFD
Performance |
| Timeline |
| Mattel Inc |
| Southern BancShares PFD |
Mattel and Southern BancShares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mattel and Southern BancShares
The main advantage of trading using opposite Mattel and Southern BancShares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mattel position performs unexpectedly, Southern BancShares 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 Southern BancShares will offset losses from the drop in Southern BancShares' long position.| Mattel vs. Funko Inc | Mattel vs. JAKKS Pacific | Mattel vs. Madison Square Garden | Mattel vs. Life Time Group |
| Southern BancShares vs. Grocery Outlet Holding | Southern BancShares vs. PennantPark Floating Rate | Southern BancShares vs. FS KKR Capital | Southern BancShares vs. Gladstone Investment |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |