Correlation Between Siriuspoint and Mattel
Can any of the company-specific risk be diversified away by investing in both Siriuspoint 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 Siriuspoint and Mattel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Siriuspoint and Mattel Inc, you can compare the effects of market volatilities on Siriuspoint 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 Siriuspoint with a short position of Mattel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siriuspoint and Mattel.
Diversification Opportunities for Siriuspoint and Mattel
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Siriuspoint and Mattel is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Siriuspoint and Mattel Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mattel Inc and Siriuspoint 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 Siriuspoint 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 Siriuspoint i.e., Siriuspoint and Mattel go up and down completely randomly.
Pair Corralation between Siriuspoint and Mattel
Given the investment horizon of 90 days Siriuspoint is expected to generate 0.7 times more return on investment than Mattel. However, Siriuspoint is 1.44 times less risky than Mattel. It trades about 0.36 of its potential returns per unit of risk. Mattel Inc is currently generating about 0.06 per unit of risk. If you would invest 1,441 in Siriuspoint on September 13, 2024 and sell it today you would earn a total of 135.00 from holding Siriuspoint or generate 9.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siriuspoint vs. Mattel Inc
Performance |
| Timeline |
| Siriuspoint |
| Mattel Inc |
Siriuspoint and Mattel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siriuspoint and Mattel
The main advantage of trading using opposite Siriuspoint and Mattel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siriuspoint 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.| Siriuspoint vs. Maiden Holdings | Siriuspoint vs. Reinsurance Group of | Siriuspoint vs. Oxbridge Re Holdings | Siriuspoint vs. Greenlight Capital Re |
| 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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