Correlation Between Mattel and Distoken Acquisition

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Mattel and Distoken Acquisition 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 Distoken Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mattel Inc and Distoken Acquisition, you can compare the effects of market volatilities on Mattel and Distoken Acquisition 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 Distoken Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mattel and Distoken Acquisition.

Diversification Opportunities for Mattel and Distoken Acquisition

MattelDistokenDiversified AwayMattelDistokenDiversified Away100%
-0.23
  Correlation Coefficient

Very good diversification

The 3 months correlation between Mattel and Distoken is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Mattel Inc and Distoken Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Distoken Acquisition 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 Distoken Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Distoken Acquisition has no effect on the direction of Mattel i.e., Mattel and Distoken Acquisition go up and down completely randomly.

Pair Corralation between Mattel and Distoken Acquisition

Considering the 90-day investment horizon Mattel Inc is expected to under-perform the Distoken Acquisition. In addition to that, Mattel is 4.53 times more volatile than Distoken Acquisition. It trades about -0.05 of its total potential returns per unit of risk. Distoken Acquisition is currently generating about 0.12 per unit of volatility. If you would invest  1,085  in Distoken Acquisition on September 20, 2024 and sell it today you would earn a total of  35.00  from holding Distoken Acquisition or generate 3.23% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Mattel Inc  vs.  Distoken Acquisition

 Performance 
JavaScript chart by amCharts 3.21.15OctNovDec -8-6-4-20246
JavaScript chart by amCharts 3.21.15MAT DIST
       Timeline  
Mattel Inc 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
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 latest weak performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.
JavaScript chart by amCharts 3.21.15OctNovDecNovDec1818.51919.52020.5
Distoken Acquisition 

Risk-Adjusted Performance

9 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Distoken Acquisition are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Distoken Acquisition is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.
JavaScript chart by amCharts 3.21.15OctNovDecNovDec10.91111.111.211.3

Mattel and Distoken Acquisition Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-3.1-2.32-1.54-0.770.00.741.492.242.99 0.51.01.52.0
JavaScript chart by amCharts 3.21.15MAT DIST
       Returns  

Pair Trading with Mattel and Distoken Acquisition

The main advantage of trading using opposite Mattel and Distoken Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mattel position performs unexpectedly, Distoken Acquisition 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 Distoken Acquisition will offset losses from the drop in Distoken Acquisition's long position.
The idea behind Mattel Inc and Distoken Acquisition 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.

Other Complementary Tools

Analyst Advice
Analyst recommendations and target price estimates broken down by several categories
USA ETFs
Find actively traded Exchange Traded Funds (ETF) in USA
Price Ceiling Movement
Calculate and plot Price Ceiling Movement for different equity instruments
Portfolio Rebalancing
Analyze risk-adjusted returns against different time horizons to find asset-allocation targets
Balance Of Power
Check stock momentum by analyzing Balance Of Power indicator and other technical ratios