Correlation Between Nautilus and Mattel
Can any of the company-specific risk be diversified away by investing in both Nautilus 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 Nautilus and Mattel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nautilus Group and Mattel Inc, you can compare the effects of market volatilities on Nautilus 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 Nautilus with a short position of Mattel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nautilus and Mattel.
Diversification Opportunities for Nautilus and Mattel
Good diversification
The 3 months correlation between Nautilus and Mattel is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Nautilus Group and Mattel Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mattel Inc and Nautilus 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 Nautilus Group 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 Nautilus i.e., Nautilus and Mattel go up and down completely randomly.
Pair Corralation between Nautilus and Mattel
Considering the 90-day investment horizon Nautilus Group is expected to under-perform the Mattel. In addition to that, Nautilus is 1.72 times more volatile than Mattel Inc. It trades about -0.08 of its total potential returns per unit of risk. Mattel Inc is currently generating about 0.01 per unit of volatility. If you would invest 1,955 in Mattel Inc on August 31, 2024 and sell it today you would lose (80.00) from holding Mattel Inc or give up 4.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 28.3% |
| Values | Daily Returns |
Nautilus Group vs. Mattel Inc
Performance |
| Timeline |
| Nautilus Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Mattel Inc |
Nautilus and Mattel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nautilus and Mattel
The main advantage of trading using opposite Nautilus and Mattel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nautilus 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.| Nautilus vs. Xponential Fitness | Nautilus vs. Life Time Group | Nautilus vs. Mattel Inc | Nautilus vs. Bowlero Corp |
| Mattel vs. Funko Inc | Mattel vs. JAKKS Pacific | Mattel vs. Madison Square Garden | Mattel vs. Life Time Group |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |