Correlation Between Ballantyne Strong and Mattel
Can any of the company-specific risk be diversified away by investing in both Ballantyne Strong 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 Ballantyne Strong and Mattel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ballantyne Strong and Mattel Inc, you can compare the effects of market volatilities on Ballantyne Strong 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 Ballantyne Strong with a short position of Mattel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ballantyne Strong and Mattel.
Diversification Opportunities for Ballantyne Strong and Mattel
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Ballantyne and Mattel is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Ballantyne Strong and Mattel Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mattel Inc and Ballantyne Strong 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 Ballantyne Strong 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 Ballantyne Strong i.e., Ballantyne Strong and Mattel go up and down completely randomly.
Pair Corralation between Ballantyne Strong and Mattel
If you would invest 1,763 in Mattel Inc on January 26, 2024 and sell it today you would earn a total of 155.00 from holding Mattel Inc or generate 8.79% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 0.4% |
Values | Daily Returns |
Ballantyne Strong vs. Mattel Inc
Performance |
Timeline |
Ballantyne Strong |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Mattel Inc |
Ballantyne Strong and Mattel Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Ballantyne Strong and Mattel
The main advantage of trading using opposite Ballantyne Strong and Mattel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ballantyne Strong 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.Ballantyne Strong vs. Where Food Comes | Ballantyne Strong vs. Datadog | Ballantyne Strong vs. Vacasa Inc | Ballantyne Strong vs. Paysafe |
Mattel vs. First Business Financial | Mattel vs. Flexsteel Industries | Mattel vs. Superior Uniform Group | Mattel vs. Eastern Co |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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