Correlation Between Sabre Corpo and Mattel
Can any of the company-specific risk be diversified away by investing in both Sabre Corpo 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 Sabre Corpo and Mattel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sabre Corpo and Mattel Inc, you can compare the effects of market volatilities on Sabre Corpo 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 Sabre Corpo with a short position of Mattel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sabre Corpo and Mattel.
Diversification Opportunities for Sabre Corpo and Mattel
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Sabre and Mattel is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Sabre Corpo and Mattel Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mattel Inc and Sabre Corpo 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 Sabre Corpo 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 Sabre Corpo i.e., Sabre Corpo and Mattel go up and down completely randomly.
Pair Corralation between Sabre Corpo and Mattel
Given the investment horizon of 90 days Sabre Corpo is expected to generate 1.49 times more return on investment than Mattel. However, Sabre Corpo is 1.49 times more volatile than Mattel Inc. It trades about 0.2 of its potential returns per unit of risk. Mattel Inc is currently generating about 0.18 per unit of risk. If you would invest 336.00 in Sabre Corpo on November 28, 2024 and sell it today you would earn a total of 80.00 from holding Sabre Corpo or generate 23.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sabre Corpo vs. Mattel Inc
Performance |
| Timeline |
| Sabre Corpo |
| Mattel Inc |
Sabre Corpo and Mattel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sabre Corpo and Mattel
The main advantage of trading using opposite Sabre Corpo and Mattel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sabre Corpo 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.| Sabre Corpo vs. Expedia Group | Sabre Corpo vs. Trip Group Ltd | Sabre Corpo vs. Booking Holdings | Sabre Corpo vs. Despegar 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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