Correlation Between Martin Marietta and Oxford Metrics
Can any of the company-specific risk be diversified away by investing in both Martin Marietta and Oxford Metrics 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 Martin Marietta and Oxford Metrics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Martin Marietta Materials and Oxford Metrics plc, you can compare the effects of market volatilities on Martin Marietta and Oxford Metrics 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 Martin Marietta with a short position of Oxford Metrics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Martin Marietta and Oxford Metrics.
Diversification Opportunities for Martin Marietta and Oxford Metrics
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Martin and Oxford is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Martin Marietta Materials and Oxford Metrics plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oxford Metrics plc and Martin Marietta 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 Martin Marietta Materials are associated (or correlated) with Oxford Metrics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oxford Metrics plc has no effect on the direction of Martin Marietta i.e., Martin Marietta and Oxford Metrics go up and down completely randomly.
Pair Corralation between Martin Marietta and Oxford Metrics
Assuming the 90 days trading horizon Martin Marietta Materials is expected to generate 0.74 times more return on investment than Oxford Metrics. However, Martin Marietta Materials is 1.35 times less risky than Oxford Metrics. It trades about 0.05 of its potential returns per unit of risk. Oxford Metrics plc is currently generating about -0.06 per unit of risk. If you would invest 45,000 in Martin Marietta Materials on September 12, 2024 and sell it today you would earn a total of 12,691 from holding Martin Marietta Materials or generate 28.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 93.82% |
| Values | Daily Returns |
Martin Marietta Materials vs. Oxford Metrics plc
Performance |
| Timeline |
| Martin Marietta Materials |
| Oxford Metrics plc |
Martin Marietta and Oxford Metrics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Martin Marietta and Oxford Metrics
The main advantage of trading using opposite Martin Marietta and Oxford Metrics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Martin Marietta position performs unexpectedly, Oxford Metrics 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 Oxford Metrics will offset losses from the drop in Oxford Metrics' long position.| Martin Marietta vs. Hong Kong Land | Martin Marietta vs. Neometals | Martin Marietta vs. Coor Service Management | Martin Marietta vs. Fidelity Sustainable USD |
| Oxford Metrics vs. Air Products Chemicals | Oxford Metrics vs. Young Cos Brewery | Oxford Metrics vs. Celebrus Technologies plc | Oxford Metrics vs. Martin Marietta Materials |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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