Correlation Between Mattel and Turning Point

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Mattel and Turning Point 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 Turning Point into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mattel Inc and Turning Point Brands, you can compare the effects of market volatilities on Mattel and Turning Point 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 Turning Point. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mattel and Turning Point.

Diversification Opportunities for Mattel and Turning Point

MattelTurningDiversified AwayMattelTurningDiversified Away100%
0.88
  Correlation Coefficient

Very poor diversification

The 3 months correlation between Mattel and Turning is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Mattel Inc and Turning Point Brands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Turning Point Brands 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 Turning Point. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Turning Point Brands has no effect on the direction of Mattel i.e., Mattel and Turning Point go up and down completely randomly.

Pair Corralation between Mattel and Turning Point

Considering the 90-day investment horizon Mattel is expected to generate 4.59 times less return on investment than Turning Point. But when comparing it to its historical volatility, Mattel Inc is 1.0 times less risky than Turning Point. It trades about 0.03 of its potential returns per unit of risk. Turning Point Brands is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  2,174  in Turning Point Brands on November 27, 2024 and sell it today you would earn a total of  4,663  from holding Turning Point Brands or generate 214.49% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthStrong
Accuracy100.0%
ValuesDaily Returns

Mattel Inc  vs.  Turning Point Brands

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -5051015
JavaScript chart by amCharts 3.21.15MAT TPB
       Timeline  
Mattel Inc 

Risk-Adjusted Performance

OK

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Mattel Inc are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unfluctuating basic indicators, Mattel unveiled solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb17.51818.51919.52020.52121.522
Turning Point Brands 

Risk-Adjusted Performance

Modest

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Turning Point Brands are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite somewhat abnormal basic indicators, Turning Point sustained solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb545658606264666870

Mattel and Turning Point Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-7.61-5.7-3.79-1.880.01.933.935.937.939.93 0.020.040.060.08
JavaScript chart by amCharts 3.21.15MAT TPB
       Returns  

Pair Trading with Mattel and Turning Point

The main advantage of trading using opposite Mattel and Turning Point positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mattel position performs unexpectedly, Turning Point 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 Turning Point will offset losses from the drop in Turning Point's long position.
The idea behind Mattel Inc and Turning Point Brands pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.

Other Complementary Tools

Cryptocurrency Center
Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency
Global Markets Map
Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes
Portfolio Holdings
Check your current holdings and cash postion to detemine if your portfolio needs rebalancing
Idea Breakdown
Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes
Risk-Return Analysis
View associations between returns expected from investment and the risk you assume


 

Trending Assets

NULL
Nedbank Group Limited
0.00  0.00  0.00 
TIG
Tigere Real Estate
114.95  0.09  0.08 
ZBFH
ZB FINANCIAL HOLDINGS
451.00  -18.9  -4.02 
WILD
WILLDALE LIMITED
2.40  0.26  12.15 
RIOZ
RIO ZIM LIMITED
106.90  0.00  0.00 
SACL
STAR AFRICA PORATION
2.86  -0.14  -4.67 
CAFCA
CAFCA LIMITED
1,800  -25  -1.37 
DMCS
Datvest Modified Consumer
3.00  0.00  0.00 
EHZL
ECOCASH HOLDINGS ZIMBABWE
14.09  -1.4  -9.04