Correlation Between Mattel and GENERAL
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By analyzing existing cross correlation between Mattel Inc and GENERAL DYNAMICS P, you can compare the effects of market volatilities on Mattel and GENERAL 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 GENERAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mattel and GENERAL.
Diversification Opportunities for Mattel and GENERAL
Good diversification
The 3 months correlation between Mattel and GENERAL is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Mattel Inc and GENERAL DYNAMICS P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GENERAL DYNAMICS P 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 GENERAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GENERAL DYNAMICS P has no effect on the direction of Mattel i.e., Mattel and GENERAL go up and down completely randomly.
Pair Corralation between Mattel and GENERAL
Considering the 90-day investment horizon Mattel Inc is expected to generate 0.79 times more return on investment than GENERAL. However, Mattel Inc is 1.27 times less risky than GENERAL. It trades about -0.11 of its potential returns per unit of risk. GENERAL DYNAMICS P is currently generating about -0.21 per unit of risk. If you would invest 1,972 in Mattel Inc on August 29, 2024 and sell it today you would lose (109.00) from holding Mattel Inc or give up 5.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 68.18% |
| Values | Daily Returns |
Mattel Inc vs. GENERAL DYNAMICS P
Performance |
| Timeline |
| Mattel Inc |
| GENERAL DYNAMICS P |
Mattel and GENERAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mattel and GENERAL
The main advantage of trading using opposite Mattel and GENERAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mattel position performs unexpectedly, GENERAL 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 GENERAL will offset losses from the drop in GENERAL's long position.| Mattel vs. MCBC Holdings | Mattel vs. Winnebago Industries | Mattel vs. LCI Industries | Mattel vs. Thor Industries |
| GENERAL vs. Albertsons Companies | GENERAL vs. Pool Corporation | GENERAL vs. Bridgford Foods | GENERAL vs. Cedar Realty Trust |
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 CEOs Directory module to screen CEOs from public companies around the world.
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