Correlation Between Markel Corp and Whitbread PLC
Can any of the company-specific risk be diversified away by investing in both Markel Corp and Whitbread PLC 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 Markel Corp and Whitbread PLC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Markel Corp and Whitbread PLC, you can compare the effects of market volatilities on Markel Corp and Whitbread PLC 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 Markel Corp with a short position of Whitbread PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Markel Corp and Whitbread PLC.
Diversification Opportunities for Markel Corp and Whitbread PLC
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Markel and Whitbread is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Markel Corp and Whitbread PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Whitbread PLC and Markel Corp 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 Markel Corp are associated (or correlated) with Whitbread PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Whitbread PLC has no effect on the direction of Markel Corp i.e., Markel Corp and Whitbread PLC go up and down completely randomly.
Pair Corralation between Markel Corp and Whitbread PLC
Assuming the 90 days trading horizon Markel Corp is expected to generate 1.65 times more return on investment than Whitbread PLC. However, Markel Corp is 1.65 times more volatile than Whitbread PLC. It trades about 0.45 of its potential returns per unit of risk. Whitbread PLC is currently generating about -0.28 per unit of risk. If you would invest 155,034 in Markel Corp on September 1, 2024 and sell it today you would earn a total of 23,612 from holding Markel Corp or generate 15.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Markel Corp vs. Whitbread PLC
Performance |
| Timeline |
| Markel Corp |
| Whitbread PLC |
Markel Corp and Whitbread PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Markel Corp and Whitbread PLC
The main advantage of trading using opposite Markel Corp and Whitbread PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Markel Corp position performs unexpectedly, Whitbread PLC 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 Whitbread PLC will offset losses from the drop in Whitbread PLC's long position.| Markel Corp vs. Zoom Video Communications | Markel Corp vs. Bankers Investment Trust | Markel Corp vs. Aberdeen Diversified Income | Markel Corp vs. Batm Advanced Communications |
| Whitbread PLC vs. Viridian Therapeutics | Whitbread PLC vs. CVR Energy | Whitbread PLC vs. Nationwide Building Society | Whitbread PLC vs. Dollar Tree |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |