Correlation Between Mattel and SMX Public
Can any of the company-specific risk be diversified away by investing in both Mattel and SMX Public 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 SMX Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mattel Inc and SMX Public Limited, you can compare the effects of market volatilities on Mattel and SMX Public 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 SMX Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mattel and SMX Public.
Diversification Opportunities for Mattel and SMX Public
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mattel and SMX is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Mattel Inc and SMX Public Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SMX Public Limited 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 SMX Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SMX Public Limited has no effect on the direction of Mattel i.e., Mattel and SMX Public go up and down completely randomly.
Pair Corralation between Mattel and SMX Public
Considering the 90-day investment horizon Mattel is expected to generate 135.75 times less return on investment than SMX Public. But when comparing it to its historical volatility, Mattel Inc is 33.12 times less risky than SMX Public. It trades about 0.03 of its potential returns per unit of risk. SMX Public Limited is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 8.00 in SMX Public Limited on November 1, 2024 and sell it today you would lose (5.19) from holding SMX Public Limited or give up 64.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 81.86% |
| Values | Daily Returns |
Mattel Inc vs. SMX Public Limited
Performance |
| Timeline |
| Mattel Inc |
| SMX Public Limited |
Mattel and SMX Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mattel and SMX Public
The main advantage of trading using opposite Mattel and SMX Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mattel position performs unexpectedly, SMX Public 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 SMX Public will offset losses from the drop in SMX Public's long position.| Mattel vs. Funko Inc | Mattel vs. JAKKS Pacific | Mattel vs. Madison Square Garden | Mattel vs. Life Time Group |
| SMX Public vs. Mattel Inc | SMX Public vs. VF Corporation | SMX Public vs. Tandy Leather Factory | SMX Public vs. Hollywood Intermediate |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |