Correlation Between RadNet and Mattel
Can any of the company-specific risk be diversified away by investing in both RadNet 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 RadNet and Mattel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between RadNet Inc and Mattel Inc, you can compare the effects of market volatilities on RadNet 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 RadNet with a short position of Mattel. Check out your portfolio center. Please also check ongoing floating volatility patterns of RadNet and Mattel.
Diversification Opportunities for RadNet and Mattel
Good diversification
The 3 months correlation between RadNet and Mattel is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding RadNet Inc and Mattel Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mattel Inc and RadNet 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 RadNet Inc 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 RadNet i.e., RadNet and Mattel go up and down completely randomly.
Pair Corralation between RadNet and Mattel
Given the investment horizon of 90 days RadNet Inc is expected to under-perform the Mattel. But the stock apears to be less risky and, when comparing its historical volatility, RadNet Inc is 1.05 times less risky than Mattel. The stock trades about -0.12 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 Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
RadNet Inc vs. Mattel Inc
Performance |
| Timeline |
| RadNet Inc |
| Mattel Inc |
RadNet and Mattel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with RadNet and Mattel
The main advantage of trading using opposite RadNet and Mattel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RadNet 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.| RadNet vs. Sotera Health Co | RadNet vs. Neogen | RadNet vs. Myriad Genetics | RadNet vs. bioAffinity Technologies Warrant |
| 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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