Correlation Between Winnebago Industries and Mattel
Can any of the company-specific risk be diversified away by investing in both Winnebago Industries 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 Winnebago Industries and Mattel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Winnebago Industries and Mattel Inc, you can compare the effects of market volatilities on Winnebago Industries 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 Winnebago Industries with a short position of Mattel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Winnebago Industries and Mattel.
Diversification Opportunities for Winnebago Industries and Mattel
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Winnebago and Mattel is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Winnebago Industries and Mattel Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mattel Inc and Winnebago Industries 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 Winnebago Industries 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 Winnebago Industries i.e., Winnebago Industries and Mattel go up and down completely randomly.
Pair Corralation between Winnebago Industries and Mattel
Considering the 90-day investment horizon Winnebago Industries is expected to generate 2.17 times less return on investment than Mattel. In addition to that, Winnebago Industries is 1.05 times more volatile than Mattel Inc. It trades about 0.01 of its total potential returns per unit of risk. Mattel Inc is currently generating about 0.03 per unit of volatility. If you would invest 1,772 in Mattel Inc on August 25, 2024 and sell it today you would earn a total of 97.00 from holding Mattel Inc or generate 5.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Winnebago Industries vs. Mattel Inc
Performance |
| Timeline |
| Winnebago Industries |
| Mattel Inc |
Winnebago Industries and Mattel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Winnebago Industries and Mattel
The main advantage of trading using opposite Winnebago Industries and Mattel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Winnebago Industries 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.| Winnebago Industries vs. LCI Industries | Winnebago Industries vs. Brunswick | Winnebago Industries vs. Polaris Industries | Winnebago Industries vs. Marine Products |
| Mattel vs. MCBC Holdings | Mattel vs. Winnebago Industries | Mattel vs. LCI Industries | Mattel vs. Thor Industries |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |