Correlation Between Mattel and NFT
Can any of the company-specific risk be diversified away by investing in both Mattel and NFT 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 NFT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mattel Inc and NFT Limited, you can compare the effects of market volatilities on Mattel and NFT 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 NFT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mattel and NFT.
Diversification Opportunities for Mattel and NFT
Very good diversification
The 3 months correlation between Mattel and NFT is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Mattel Inc and NFT Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NFT Limited 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 NFT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NFT Limited has no effect on the direction of Mattel i.e., Mattel and NFT go up and down completely randomly.
Pair Corralation between Mattel and NFT
Considering the 90-day investment horizon Mattel Inc is expected to generate 0.22 times more return on investment than NFT. However, Mattel Inc is 4.5 times less risky than NFT. It trades about 0.09 of its potential returns per unit of risk. NFT Limited is currently generating about -0.03 per unit of risk. If you would invest 1,892 in Mattel Inc on December 1, 2024 and sell it today you would earn a total of 238.00 from holding Mattel Inc or generate 12.58% 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. NFT Limited
Performance |
Timeline |
Mattel Inc |
NFT Limited |
Mattel and NFT Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Mattel and NFT
The main advantage of trading using opposite Mattel and NFT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mattel position performs unexpectedly, NFT 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 NFT will offset losses from the drop in NFT's long position.Mattel vs. Funko Inc | Mattel vs. JAKKS Pacific | Mattel vs. Madison Square Garden | Mattel vs. Life Time Group |
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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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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