Correlation Between Mattel and Sorrento Therapeutics
Can any of the company-specific risk be diversified away by investing in both Mattel and Sorrento Therapeutics 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 Sorrento Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mattel Inc and Sorrento Therapeutics, you can compare the effects of market volatilities on Mattel and Sorrento Therapeutics 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 Sorrento Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mattel and Sorrento Therapeutics.
Diversification Opportunities for Mattel and Sorrento Therapeutics
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Mattel and Sorrento is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Mattel Inc and Sorrento Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sorrento Therapeutics 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 Sorrento Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sorrento Therapeutics has no effect on the direction of Mattel i.e., Mattel and Sorrento Therapeutics go up and down completely randomly.
Pair Corralation between Mattel and Sorrento Therapeutics
If you would invest 1,851 in Mattel Inc on September 12, 2024 and sell it today you would earn a total of 68.00 from holding Mattel Inc or generate 3.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Mattel Inc vs. Sorrento Therapeutics
Performance |
| Timeline |
| Mattel Inc |
| Sorrento Therapeutics |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Mattel and Sorrento Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mattel and Sorrento Therapeutics
The main advantage of trading using opposite Mattel and Sorrento Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mattel position performs unexpectedly, Sorrento Therapeutics 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 Sorrento Therapeutics will offset losses from the drop in Sorrento Therapeutics' long position.| Mattel vs. Clarus Corp | Mattel vs. Escalade Incorporated | Mattel vs. Johnson Outdoors | Mattel vs. JAKKS Pacific |
| Sorrento Therapeutics vs. Xponential Fitness | Sorrento Therapeutics vs. Planet Fitness | Sorrento Therapeutics vs. Mattel Inc | Sorrento Therapeutics vs. JD Sports Fashion |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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