Correlation Between Mattel and QVC

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

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

Diversification Opportunities for Mattel and QVC

-0.66

Correlation Coefficient

Mattel  QVC

Excellent diversification

The 3 months correlation between Mattel and QVC is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Mattel Inc and QVC Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on QVC Group 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 QVC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of QVC Group has no effect on the direction of Mattel i.e., Mattel and QVC go up and down completely randomly.

Pair Corralation between Mattel and QVC

Considering the 90-day investment horizon Mattel Inc is expected to generate 0.26 times more return on investment than QVC. However, Mattel Inc is 3.89 times less risky than QVC. It trades about 0.04 of its potential returns per unit of risk. QVC Group is currently generating about -0.05 per unit of risk. If you would invest  1,620  in Mattel Inc on May 3, 2025 and sell it today you would earn a total of  81.00  from holding Mattel Inc or generate 5.0% return on investment over 90 days.

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

Mattel Inc  vs.  QVC Group

Mattel Inc

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Mattel Inc are ranked lower than 3 (%) 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 September 2025.

QVC Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days QVC Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's technical and fundamental indicators remain somewhat strong which may send shares a bit higher in September 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Mattel and QVC

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

The idea behind Mattel Inc and QVC Group 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 Commodity Directory module to find actively traded commodities issued by global exchanges.