Correlation Between Mattel and Solidion Technology
Can any of the company-specific risk be diversified away by investing in both Mattel and Solidion Technology 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 Solidion Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mattel Inc and Solidion Technology, you can compare the effects of market volatilities on Mattel and Solidion Technology 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 Solidion Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mattel and Solidion Technology.
Diversification Opportunities for Mattel and Solidion Technology
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mattel and Solidion is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Mattel Inc and Solidion Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Solidion Technology 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 Solidion Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Solidion Technology has no effect on the direction of Mattel i.e., Mattel and Solidion Technology go up and down completely randomly.
Pair Corralation between Mattel and Solidion Technology
Considering the 90-day investment horizon Mattel Inc is expected to under-perform the Solidion Technology. But the stock apears to be less risky and, when comparing its historical volatility, Mattel Inc is 9.38 times less risky than Solidion Technology. The stock trades about -0.08 of its potential returns per unit of risk. The Solidion Technology is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 34.00 in Solidion Technology on October 11, 2024 and sell it today you would earn a total of 17.00 from holding Solidion Technology or generate 50.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mattel Inc vs. Solidion Technology
Performance |
| Timeline |
| Mattel Inc |
| Solidion Technology |
Mattel and Solidion Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mattel and Solidion Technology
The main advantage of trading using opposite Mattel and Solidion Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mattel position performs unexpectedly, Solidion Technology 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 Solidion Technology will offset losses from the drop in Solidion Technology's long position.| Mattel vs. Funko Inc | Mattel vs. JAKKS Pacific | Mattel vs. Madison Square Garden | Mattel vs. Life Time Group |
| Solidion Technology vs. Arbor Realty Trust | Solidion Technology vs. Mattel Inc | Solidion Technology vs. Marine Products | Solidion Technology vs. Thor Industries |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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