Correlation Between Trio Petroleum and Mattel

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

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

Diversification Opportunities for Trio Petroleum and Mattel

0.37

Correlation Coefficient

Trio Petroleum  Mattel

Weak diversification

The 3 months correlation between Trio and Mattel is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Trio Petroleum Corp and Mattel Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mattel Inc and Trio Petroleum 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 Trio Petroleum Corp 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 Trio Petroleum i.e., Trio Petroleum and Mattel go up and down completely randomly.

Pair Corralation between Trio Petroleum and Mattel

Given the investment horizon of 90 days Trio Petroleum Corp is expected to under-perform the Mattel. In addition to that, Trio Petroleum is 1.2 times more volatile than Mattel Inc. It trades about -0.05 of its total potential returns per unit of risk. Mattel Inc is currently generating about -0.03 per unit of volatility. If you would invest  1,988  in Mattel Inc on July 20, 2025 and sell it today you would lose (147.00) from holding Mattel Inc or give up 7.39% of portfolio value over 90 days.

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

Trio Petroleum Corp  vs.  Mattel Inc

Trio Petroleum Corp

Risk-Adjusted Performance

Weakest

Over the last 90 days Trio Petroleum Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest fragile performance, the Stock's technical and fundamental indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private 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 comparatively stable basic indicators, Mattel is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Trio Petroleum and Mattel

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

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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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.