Correlation Between Mattel and Thor Industries
Can any of the company-specific risk be diversified away by investing in both Mattel and Thor Industries 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 Thor Industries into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mattel Inc and Thor Industries, you can compare the effects of market volatilities on Mattel and Thor Industries 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 Thor Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mattel and Thor Industries.
Diversification Opportunities for Mattel and Thor Industries
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Mattel and Thor is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Mattel Inc and Thor Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thor Industries 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 Thor Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thor Industries has no effect on the direction of Mattel i.e., Mattel and Thor Industries go up and down completely randomly.
Pair Corralation between Mattel and Thor Industries
Considering the 90-day investment horizon Mattel Inc is expected to generate 1.03 times more return on investment than Thor Industries. However, Mattel is 1.03 times more volatile than Thor Industries. It trades about 0.06 of its potential returns per unit of risk. Thor Industries is currently generating about -0.14 per unit of risk. If you would invest 1,884 in Mattel Inc on September 13, 2024 and sell it today you would earn a total of 35.00 from holding Mattel Inc or generate 1.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mattel Inc vs. Thor Industries
Performance |
| Timeline |
| Mattel Inc |
| Thor Industries |
Mattel and Thor Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mattel and Thor Industries
The main advantage of trading using opposite Mattel and Thor Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mattel position performs unexpectedly, Thor Industries 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 Thor Industries will offset losses from the drop in Thor Industries' long position.| Mattel vs. Clarus Corp | Mattel vs. Escalade Incorporated | Mattel vs. Johnson Outdoors | Mattel vs. JAKKS Pacific |
| Thor Industries vs. Marine Products | Thor Industries vs. Malibu Boats | Thor Industries vs. Brunswick | Thor Industries vs. LCI 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |