Correlation Between Southern BancShares and Mattel
Can any of the company-specific risk be diversified away by investing in both Southern BancShares 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 Southern BancShares and Mattel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Southern BancShares PFD and Mattel Inc, you can compare the effects of market volatilities on Southern BancShares 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 Southern BancShares with a short position of Mattel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Southern BancShares and Mattel.
Diversification Opportunities for Southern BancShares and Mattel
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Southern and Mattel is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Southern BancShares PFD and Mattel Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mattel Inc and Southern BancShares 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 Southern BancShares PFD 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 Southern BancShares i.e., Southern BancShares and Mattel go up and down completely randomly.
Pair Corralation between Southern BancShares and Mattel
Assuming the 90 days horizon Southern BancShares PFD is expected to under-perform the Mattel. But the pink sheet apears to be less risky and, when comparing its historical volatility, Southern BancShares PFD is 1.03 times less risky than Mattel. The pink sheet trades about -0.02 of its potential returns per unit of risk. The Mattel Inc is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 1,954 in Mattel Inc on October 22, 2024 and sell it today you would lose (161.00) from holding Mattel Inc or give up 8.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 47.83% |
| Values | Daily Returns |
Southern BancShares PFD vs. Mattel Inc
Performance |
| Timeline |
| Southern BancShares PFD |
| Mattel Inc |
Southern BancShares and Mattel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Southern BancShares and Mattel
The main advantage of trading using opposite Southern BancShares and Mattel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Southern BancShares 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.| Southern BancShares vs. Mattel Inc | Southern BancShares vs. Tencent Music Entertainment | Southern BancShares vs. Brunswick | Southern BancShares vs. Canlan Ice Sports |
| 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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