Correlation Between Neogen and Mattel
Can any of the company-specific risk be diversified away by investing in both Neogen 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 Neogen and Mattel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Neogen and Mattel Inc, you can compare the effects of market volatilities on Neogen 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 Neogen with a short position of Mattel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Neogen and Mattel.
Diversification Opportunities for Neogen and Mattel
Significant diversification
The 3 months correlation between Neogen and Mattel is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Neogen and Mattel Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mattel Inc and Neogen 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 Neogen 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 Neogen i.e., Neogen and Mattel go up and down completely randomly.
Pair Corralation between Neogen and Mattel
Given the investment horizon of 90 days Neogen is expected to generate 150.33 times less return on investment than Mattel. In addition to that, Neogen is 1.35 times more volatile than Mattel Inc. It trades about 0.0 of its total potential returns per unit of risk. Mattel Inc is currently generating about 0.02 per unit of volatility. If you would invest 1,702 in Mattel Inc on September 14, 2024 and sell it today you would earn a total of 230.00 from holding Mattel Inc or generate 13.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Neogen vs. Mattel Inc
Performance |
| Timeline |
| Neogen |
| Mattel Inc |
Neogen and Mattel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Neogen and Mattel
The main advantage of trading using opposite Neogen and Mattel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Neogen 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.| Neogen vs. Qiagen NV | Neogen vs. Aclaris Therapeutics | Neogen vs. IQVIA Holdings | Neogen vs. Medpace Holdings |
| Mattel vs. Clarus Corp | Mattel vs. Johnson Outdoors | Mattel vs. JAKKS Pacific | Mattel vs. OneSpaWorld Holdings |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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