Correlation Between Playtika Holding and Mattel
Can any of the company-specific risk be diversified away by investing in both Playtika Holding 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 Playtika Holding and Mattel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Playtika Holding Corp and Mattel Inc, you can compare the effects of market volatilities on Playtika Holding 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 Playtika Holding with a short position of Mattel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Playtika Holding and Mattel.
Diversification Opportunities for Playtika Holding and Mattel
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Playtika and Mattel is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Playtika Holding Corp and Mattel Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mattel Inc and Playtika Holding 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 Playtika Holding Corp 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 Playtika Holding i.e., Playtika Holding and Mattel go up and down completely randomly.
Pair Corralation between Playtika Holding and Mattel
Given the investment horizon of 90 days Playtika Holding Corp is expected to under-perform the Mattel. In addition to that, Playtika Holding is 1.26 times more volatile than Mattel Inc. It trades about -0.01 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 1,867 in Mattel Inc on August 31, 2024 and sell it today you would earn a total of 35.00 from holding Mattel Inc or generate 1.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Playtika Holding Corp vs. Mattel Inc
Performance |
| Timeline |
| Playtika Holding Corp |
| Mattel Inc |
Playtika Holding and Mattel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Playtika Holding and Mattel
The main advantage of trading using opposite Playtika Holding and Mattel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Playtika Holding 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.| Playtika Holding vs. Doubledown Interactive Co | Playtika Holding vs. SohuCom | Playtika Holding vs. Playstudios | Playtika Holding vs. GDEV Inc |
| 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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