Correlation Between Mattel and Chesapeake Utilities
Can any of the company-specific risk be diversified away by investing in both Mattel and Chesapeake Utilities 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 Chesapeake Utilities into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mattel Inc and Chesapeake Utilities, you can compare the effects of market volatilities on Mattel and Chesapeake Utilities 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 Chesapeake Utilities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mattel and Chesapeake Utilities.
Diversification Opportunities for Mattel and Chesapeake Utilities
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Mattel and Chesapeake is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Mattel Inc and Chesapeake Utilities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chesapeake Utilities 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 Chesapeake Utilities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chesapeake Utilities has no effect on the direction of Mattel i.e., Mattel and Chesapeake Utilities go up and down completely randomly.
Pair Corralation between Mattel and Chesapeake Utilities
Considering the 90-day investment horizon Mattel Inc is expected to generate 1.83 times more return on investment than Chesapeake Utilities. However, Mattel is 1.83 times more volatile than Chesapeake Utilities. It trades about 0.1 of its potential returns per unit of risk. Chesapeake Utilities is currently generating about 0.07 per unit of risk. If you would invest 1,882 in Mattel Inc on September 5, 2025 and sell it today you would earn a total of 241.00 from holding Mattel Inc or generate 12.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mattel Inc vs. Chesapeake Utilities
Performance |
| Timeline |
| Mattel Inc |
| Chesapeake Utilities |
Mattel and Chesapeake Utilities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mattel and Chesapeake Utilities
The main advantage of trading using opposite Mattel and Chesapeake Utilities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mattel position performs unexpectedly, Chesapeake Utilities 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 Chesapeake Utilities will offset losses from the drop in Chesapeake Utilities' long position.| Mattel vs. Chesapeake Utilities | Mattel vs. Where Food Comes | Mattel vs. Collins Foods Limited | Mattel vs. Genufood Energy |
| Chesapeake Utilities vs. Jones Soda Co | Chesapeake Utilities vs. Nissan Chemical | Chesapeake Utilities vs. Drinks Americas Hldg | Chesapeake Utilities vs. Fevertree Drinks Plc |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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