Correlation Between Mattel and Contextlogic
Can any of the company-specific risk be diversified away by investing in both Mattel and Contextlogic 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 Contextlogic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mattel Inc and Contextlogic, you can compare the effects of market volatilities on Mattel and Contextlogic 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 Contextlogic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mattel and Contextlogic.
Diversification Opportunities for Mattel and Contextlogic
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Mattel and Contextlogic is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Mattel Inc and Contextlogic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Contextlogic 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 Contextlogic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Contextlogic has no effect on the direction of Mattel i.e., Mattel and Contextlogic go up and down completely randomly.
Pair Corralation between Mattel and Contextlogic
If you would invest 1,686 in Mattel Inc on June 2, 2025 and sell it today you would earn a total of 144.00 from holding Mattel Inc or generate 8.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Mattel Inc vs. Contextlogic
Performance |
| Timeline |
| Mattel Inc |
| Contextlogic |
Risk-Adjusted Performance
Fair
Weak | Strong |
Mattel and Contextlogic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mattel and Contextlogic
The main advantage of trading using opposite Mattel and Contextlogic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mattel position performs unexpectedly, Contextlogic 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 Contextlogic will offset losses from the drop in Contextlogic's long position.| Mattel vs. Hasbro Inc | Mattel vs. United Parks Resorts | Mattel vs. JAKKS Pacific | Mattel vs. Planet Fitness |
| Contextlogic vs. Phenixfin | Contextlogic vs. PennantPark Floating Rate | Contextlogic vs. RH | Contextlogic vs. Tradeshow Marketing |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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