Correlation Between Mattel and Amer Sports,

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

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

Diversification Opportunities for Mattel and Amer Sports,

-0.51

Correlation Coefficient

Mattel  Amer Sports,

Excellent diversification

The 3 months correlation between Mattel and Amer is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Mattel Inc and Amer Sports, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amer Sports, and Mattel 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 Mattel Inc are associated (or correlated) with Amer Sports,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amer Sports, has no effect on the direction of Mattel i.e., Mattel and Amer Sports, go up and down completely randomly.

Pair Corralation between Mattel and Amer Sports,

Considering the 90-day investment horizon Mattel Inc is expected to under-perform the Amer Sports,. But the stock apears to be less risky and, when comparing its historical volatility, Mattel Inc is 1.64 times less risky than Amer Sports,. The stock trades about -0.12 of its potential returns per unit of risk. The Amer Sports, is currently generating about 0.44 of returns per unit of risk over similar time horizon. If you would invest  2,564  in Amer Sports, on October 11, 2024 and sell it today you would earn a total of  489.00  from holding Amer Sports, or generate 19.07% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Mattel Inc  vs.  Amer Sports,

Mattel Inc

Risk-Adjusted Performance

0 of 100

Very Weak

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

Amer Sports,

Risk-Adjusted Performance

19 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Amer Sports, are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, Amer Sports, unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Mattel and Amer Sports,

The main advantage of trading using opposite Mattel and Amer Sports, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mattel position performs unexpectedly, Amer Sports, 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 Amer Sports, will offset losses from the drop in Amer Sports,'s long position.

The idea behind Mattel Inc and Amer Sports, 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.