Correlation Between 42225UAF1 and Mattel
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By analyzing existing cross correlation between HEALTHCARE TR AMER and Mattel Inc, you can compare the effects of market volatilities on 42225UAF1 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 42225UAF1 with a short position of Mattel. Check out your portfolio center. Please also check ongoing floating volatility patterns of 42225UAF1 and Mattel.
Diversification Opportunities for 42225UAF1 and Mattel
Significant diversification
The 3 months correlation between 42225UAF1 and Mattel is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding HEALTHCARE TR AMER and Mattel Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mattel Inc and 42225UAF1 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 HEALTHCARE TR AMER 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 42225UAF1 i.e., 42225UAF1 and Mattel go up and down completely randomly.
Pair Corralation between 42225UAF1 and Mattel
Assuming the 90 days trading horizon 42225UAF1 is expected to generate 7.96 times less return on investment than Mattel. But when comparing it to its historical volatility, HEALTHCARE TR AMER is 3.22 times less risky than Mattel. It trades about 0.01 of its potential returns per unit of risk. Mattel Inc is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,739 in Mattel Inc on September 1, 2024 and sell it today you would earn a total of 163.00 from holding Mattel Inc or generate 9.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 63.23% |
| Values | Daily Returns |
HEALTHCARE TR AMER vs. Mattel Inc
Performance |
| Timeline |
| HEALTHCARE TR AMER |
| Mattel Inc |
42225UAF1 and Mattel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 42225UAF1 and Mattel
The main advantage of trading using opposite 42225UAF1 and Mattel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 42225UAF1 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.| 42225UAF1 vs. Sonos Inc | 42225UAF1 vs. Life Time Group | 42225UAF1 vs. WiMi Hologram Cloud | 42225UAF1 vs. Zhihu Inc ADR |
| 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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