Correlation Between Mattel and Brinker International

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

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

Diversification Opportunities for Mattel and Brinker International

0.11

Correlation Coefficient

Mattel  Brinker International

Average diversification

The 3 months correlation between Mattel and Brinker is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Mattel Inc and Brinker International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brinker International 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 Brinker International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brinker International has no effect on the direction of Mattel i.e., Mattel and Brinker International go up and down completely randomly.

Pair Corralation between Mattel and Brinker International

Considering the 90-day investment horizon Mattel is expected to generate 17.43 times less return on investment than Brinker International. But when comparing it to its historical volatility, Mattel Inc is 1.21 times less risky than Brinker International. It trades about 0.01 of its potential returns per unit of risk. Brinker International is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  3,849  in Brinker International on July 26, 2025 and sell it today you would earn a total of  8,788  from holding Brinker International or generate 228.32% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	99.79%
Values	Daily Returns

Mattel Inc  vs.  Brinker International

Mattel Inc

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Mattel Inc are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively inconsistent basic indicators, Mattel may actually be approaching a critical reversion point that can send shares even higher in November 2025.

Brinker International

Risk-Adjusted Performance

Weakest

Over the last 90 days Brinker International has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in November 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Mattel and Brinker International

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

The idea behind Mattel Inc and Brinker International 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.