Correlation Between Maiden Holdings and Mattel
Can any of the company-specific risk be diversified away by investing in both Maiden Holdings and Mattel 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 Maiden Holdings and Mattel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Maiden Holdings and Mattel Inc, you can compare the effects of market volatilities on Maiden Holdings and Mattel 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 Maiden Holdings with a short position of Mattel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maiden Holdings and Mattel.
Diversification Opportunities for Maiden Holdings and Mattel
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Maiden and Mattel is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Maiden Holdings and Mattel Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mattel Inc and Maiden Holdings 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 Maiden Holdings are associated (or correlated) with Mattel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mattel Inc has no effect on the direction of Maiden Holdings i.e., Maiden Holdings and Mattel go up and down completely randomly.
Pair Corralation between Maiden Holdings and Mattel
Given the investment horizon of 90 days Maiden Holdings is expected to under-perform the Mattel. But the stock apears to be less risky and, when comparing its historical volatility, Maiden Holdings is 1.19 times less risky than Mattel. The stock trades about -0.3 of its potential returns per unit of risk. The Mattel Inc is currently generating about 0.06 of returns per unit of risk over similar time horizon. 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 Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Maiden Holdings vs. Mattel Inc
Performance |
| Timeline |
| Maiden Holdings |
| Mattel Inc |
Maiden Holdings and Mattel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maiden Holdings and Mattel
The main advantage of trading using opposite Maiden Holdings and Mattel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maiden Holdings position performs unexpectedly, Mattel 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 Mattel will offset losses from the drop in Mattel's long position.| Maiden Holdings vs. Maiden Holdings North | Maiden Holdings vs. Reinsurance Group of | Maiden Holdings vs. Entergy Arkansas LLC | Maiden Holdings vs. Entergy New Orleans |
| Mattel vs. Clarus Corp | Mattel vs. Escalade Incorporated | Mattel vs. Johnson Outdoors | Mattel vs. JAKKS Pacific |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Stocks Directory Find actively traded stocks across global markets | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |