Correlation Between Mattel and Cardio Diagnostics

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

By analyzing existing cross correlation between Mattel Inc and Cardio Diagnostics Holdings, you can compare the effects of market volatilities on Mattel and Cardio Diagnostics 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 Cardio Diagnostics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mattel and Cardio Diagnostics.

Diversification Opportunities for Mattel and Cardio Diagnostics

-0.84

Correlation Coefficient

Mattel  Cardio Diagnostics

Pay attention - limited upside

The 3 months correlation between Mattel and Cardio is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding Mattel Inc and Cardio Diagnostics Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cardio Diagnostics 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 Cardio Diagnostics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cardio Diagnostics has no effect on the direction of Mattel i.e., Mattel and Cardio Diagnostics go up and down completely randomly.

Pair Corralation between Mattel and Cardio Diagnostics

Considering the 90-day investment horizon Mattel Inc is expected to generate 0.33 times more return on investment than Cardio Diagnostics. However, Mattel Inc is 3.01 times less risky than Cardio Diagnostics. It trades about 0.07 of its potential returns per unit of risk. Cardio Diagnostics Holdings is currently generating about -0.14 per unit of risk. If you would invest  1,587  in Mattel Inc on May 1, 2025 and sell it today you would earn a total of  154.00  from holding Mattel Inc or generate 9.7% return on investment over 90 days.

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

Mattel Inc  vs.  Cardio Diagnostics Holdings

Mattel Inc

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Mattel Inc are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Mattel may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Cardio Diagnostics

Risk-Adjusted Performance

Very Weak

Over the last 90 days Cardio Diagnostics Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's forward indicators remain very healthy which may send shares a bit higher in August 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Mattel and Cardio Diagnostics

The main advantage of trading using opposite Mattel and Cardio Diagnostics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mattel position performs unexpectedly, Cardio Diagnostics 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 Cardio Diagnostics will offset losses from the drop in Cardio Diagnostics' long position.

The idea behind Mattel Inc and Cardio Diagnostics Holdings 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.

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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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.