Correlation Between BANDAI NAMCO and Mattel
Can any of the company-specific risk be diversified away by investing in both BANDAI NAMCO 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 BANDAI NAMCO and Mattel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BANDAI NAMCO Holdings and Mattel Inc, you can compare the effects of market volatilities on BANDAI NAMCO 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 BANDAI NAMCO with a short position of Mattel. Check out your portfolio center. Please also check ongoing floating volatility patterns of BANDAI NAMCO and Mattel.
Diversification Opportunities for BANDAI NAMCO and Mattel
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between BANDAI and Mattel is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding BANDAI NAMCO Holdings and Mattel Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mattel Inc and BANDAI NAMCO 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 BANDAI NAMCO 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 BANDAI NAMCO i.e., BANDAI NAMCO and Mattel go up and down completely randomly.
Pair Corralation between BANDAI NAMCO and Mattel
Assuming the 90 days horizon BANDAI NAMCO Holdings is expected to generate 0.9 times more return on investment than Mattel. However, BANDAI NAMCO Holdings is 1.11 times less risky than Mattel. It trades about 0.02 of its potential returns per unit of risk. Mattel Inc is currently generating about 0.0 per unit of risk. If you would invest 990.00 in BANDAI NAMCO Holdings on August 27, 2024 and sell it today you would earn a total of 25.00 from holding BANDAI NAMCO Holdings or generate 2.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BANDAI NAMCO Holdings vs. Mattel Inc
Performance |
| Timeline |
| BANDAI NAMCO Holdings |
| Mattel Inc |
BANDAI NAMCO and Mattel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BANDAI NAMCO and Mattel
The main advantage of trading using opposite BANDAI NAMCO and Mattel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BANDAI NAMCO 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.| BANDAI NAMCO vs. HUMANA INC | BANDAI NAMCO vs. Aquagold International | BANDAI NAMCO vs. Barloworld Ltd ADR | BANDAI NAMCO vs. Morningstar Unconstrained Allocation |
| Mattel vs. MCBC Holdings | Mattel vs. Winnebago Industries | Mattel vs. LCI Industries | Mattel 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |