Correlation Between Titan International and Mattel
Can any of the company-specific risk be diversified away by investing in both Titan International 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 Titan International and Mattel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Titan International and Mattel Inc, you can compare the effects of market volatilities on Titan International 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 Titan International with a short position of Mattel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Titan International and Mattel.
Diversification Opportunities for Titan International and Mattel
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Titan and Mattel is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Titan International and Mattel Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mattel Inc and Titan International 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 Titan International 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 Titan International i.e., Titan International and Mattel go up and down completely randomly.
Pair Corralation between Titan International and Mattel
Considering the 90-day investment horizon Titan International is expected to generate 2.15 times more return on investment than Mattel. However, Titan International is 2.15 times more volatile than Mattel Inc. It trades about 0.04 of its potential returns per unit of risk. Mattel Inc is currently generating about -0.1 per unit of risk. If you would invest 727.00 in Titan International on August 30, 2024 and sell it today you would earn a total of 10.00 from holding Titan International or generate 1.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Titan International vs. Mattel Inc
Performance |
| Timeline |
| Titan International |
| Mattel Inc |
Titan International and Mattel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Titan International and Mattel
The main advantage of trading using opposite Titan International and Mattel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Titan International 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.| Titan International vs. MYR Group | Titan International vs. Granite Construction Incorporated | Titan International vs. Construction Partners | Titan International vs. Great Lakes Dredge |
| 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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