Correlation Between Mattel and Urban Outfitters
Can any of the company-specific risk be diversified away by investing in both Mattel and Urban Outfitters 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 Urban Outfitters into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mattel Inc and Urban Outfitters, you can compare the effects of market volatilities on Mattel and Urban Outfitters 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 Urban Outfitters. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mattel and Urban Outfitters.
Diversification Opportunities for Mattel and Urban Outfitters
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Mattel and Urban is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Mattel Inc and Urban Outfitters in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Urban Outfitters 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 Urban Outfitters. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Urban Outfitters has no effect on the direction of Mattel i.e., Mattel and Urban Outfitters go up and down completely randomly.
Pair Corralation between Mattel and Urban Outfitters
Considering the 90-day investment horizon Mattel Inc is expected to under-perform the Urban Outfitters. In addition to that, Mattel is 1.02 times more volatile than Urban Outfitters. It trades about -0.15 of its total potential returns per unit of risk. Urban Outfitters is currently generating about -0.01 per unit of volatility. If you would invest 7,569 in Urban Outfitters on October 6, 2025 and sell it today you would lose (35.00) from holding Urban Outfitters or give up 0.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mattel Inc vs. Urban Outfitters
Performance |
| Timeline |
| Mattel Inc |
| Urban Outfitters |
Mattel and Urban Outfitters Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mattel and Urban Outfitters
The main advantage of trading using opposite Mattel and Urban Outfitters positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mattel position performs unexpectedly, Urban Outfitters 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 Urban Outfitters will offset losses from the drop in Urban Outfitters' long position.| Mattel vs. Life Time Group | Mattel vs. Lear Corporation | Mattel vs. CarMax Inc | Mattel vs. Urban Outfitters |
| Urban Outfitters vs. Boot Barn Holdings | Urban Outfitters vs. Macys Inc | Urban Outfitters vs. Bath Body Works | Urban Outfitters vs. Lear Corporation |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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