Correlation Between Landcadia Holdings and Mattel

Can any of the company-specific risk be diversified away by investing in both Landcadia Holdings 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 Landcadia Holdings and Mattel into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Landcadia Holdings II and Mattel Inc, you can compare the effects of market volatilities on Landcadia Holdings 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 Landcadia Holdings with a short position of Mattel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Landcadia Holdings and Mattel.

Diversification Opportunities for Landcadia Holdings and Mattel

0.0

Correlation Coefficient

Landcadia Holdings  Mattel

Pay attention - limited upside

The 3 months correlation between Landcadia and Mattel is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Landcadia Holdings II and Mattel Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mattel Inc and Landcadia Holdings 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 Landcadia Holdings II 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 Landcadia Holdings i.e., Landcadia Holdings and Mattel go up and down completely randomly.

Pair Corralation between Landcadia Holdings and Mattel

If you would invest  1,782  in Mattel Inc on December 21, 2024 and sell it today you would earn a total of  221.00  from holding Mattel Inc or generate 12.4% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Landcadia Holdings II  vs.  Mattel Inc

Landcadia Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days Landcadia Holdings II has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable technical indicators, Landcadia Holdings is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Mattel Inc

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Mattel Inc are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Mattel unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Landcadia Holdings and Mattel

The main advantage of trading using opposite Landcadia Holdings and Mattel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Landcadia Holdings 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.

The idea behind Landcadia Holdings II and Mattel Inc pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.