Correlation Between NVIDIA and Mattel

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

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

Diversification Opportunities for NVIDIA and Mattel

0.09

Correlation Coefficient

NVIDIA  Mattel

Significant diversification

The 3 months correlation between NVIDIA and Mattel is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding NVIDIA and Mattel Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mattel Inc and NVIDIA 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 NVIDIA 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 NVIDIA i.e., NVIDIA and Mattel go up and down completely randomly.

Pair Corralation between NVIDIA and Mattel

Given the investment horizon of 90 days NVIDIA is expected to generate 1.23 times less return on investment than Mattel. In addition to that, NVIDIA is 1.06 times more volatile than Mattel Inc. It trades about 0.07 of its total potential returns per unit of risk. Mattel Inc is currently generating about 0.09 per unit of volatility. If you would invest  1,833  in Mattel Inc on September 9, 2025 and sell it today you would earn a total of  210.00  from holding Mattel Inc or generate 11.46% return on investment over 90 days.

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

NVIDIA  vs.  Mattel Inc

NVIDIA

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in NVIDIA are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite somewhat conflicting fundamental indicators, NVIDIA may actually be approaching a critical reversion point that can send shares even higher in January 2026.

Mattel Inc

Risk-Adjusted Performance

Fair

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 January 2026.

Pair Trading with NVIDIA and Mattel

The main advantage of trading using opposite NVIDIA and Mattel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NVIDIA 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 NVIDIA 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.