Correlation Between Alpha Technology and Mattel

Can any of the company-specific risk be diversified away by investing in both Alpha Technology 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 Alpha Technology and Mattel into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Alpha Technology Group and Mattel Inc, you can compare the effects of market volatilities on Alpha Technology 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 Alpha Technology with a short position of Mattel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alpha Technology and Mattel.

Diversification Opportunities for Alpha Technology and Mattel

0.44

Correlation Coefficient

Alpha Technology  Mattel

Very weak diversification

The 3 months correlation between Alpha and Mattel is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Alpha Technology Group and Mattel Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mattel Inc and Alpha Technology 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 Alpha Technology Group 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 Alpha Technology i.e., Alpha Technology and Mattel go up and down completely randomly.

Pair Corralation between Alpha Technology and Mattel

Given the investment horizon of 90 days Alpha Technology Group is expected to under-perform the Mattel. In addition to that, Alpha Technology is 1.46 times more volatile than Mattel Inc. It trades about -0.11 of its total potential returns per unit of risk. Mattel Inc is currently generating about -0.04 per unit of volatility. If you would invest  2,000  in Mattel Inc on May 19, 2025 and sell it today you would lose (182.00) from holding Mattel Inc or give up 9.1% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Alpha Technology Group  vs.  Mattel Inc

Alpha Technology

Risk-Adjusted Performance

Weakest

Over the last 90 days Alpha Technology Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's technical and fundamental indicators remain quite persistent which may send shares a bit higher in September 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Mattel Inc

Risk-Adjusted Performance

Weakest

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 uncertain 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.

Pair Trading with Alpha Technology and Mattel

The main advantage of trading using opposite Alpha Technology and Mattel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alpha Technology 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.

The idea behind Alpha Technology Group and Mattel Inc 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.