Correlation Between Associated Capital and Marygold Companies
Can any of the company-specific risk be diversified away by investing in both Associated Capital and Marygold Companies 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 Associated Capital and Marygold Companies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Associated Capital Group and Marygold Companies, you can compare the effects of market volatilities on Associated Capital and Marygold Companies 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 Associated Capital with a short position of Marygold Companies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Associated Capital and Marygold Companies.
Diversification Opportunities for Associated Capital and Marygold Companies
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Associated and Marygold is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Associated Capital Group and Marygold Companies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marygold Companies and Associated Capital 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 Associated Capital Group are associated (or correlated) with Marygold Companies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marygold Companies has no effect on the direction of Associated Capital i.e., Associated Capital and Marygold Companies go up and down completely randomly.
Pair Corralation between Associated Capital and Marygold Companies
Allowing for the 90-day total investment horizon Associated Capital is expected to generate 32.28 times less return on investment than Marygold Companies. But when comparing it to its historical volatility, Associated Capital Group is 10.63 times less risky than Marygold Companies. It trades about 0.03 of its potential returns per unit of risk. Marygold Companies is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 136.00 in Marygold Companies on August 27, 2024 and sell it today you would earn a total of 13.00 from holding Marygold Companies or generate 9.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Associated Capital Group vs. Marygold Companies
Performance |
| Timeline |
| Associated Capital |
| Marygold Companies |
Associated Capital and Marygold Companies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Associated Capital and Marygold Companies
The main advantage of trading using opposite Associated Capital and Marygold Companies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Associated Capital position performs unexpectedly, Marygold Companies 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 Marygold Companies will offset losses from the drop in Marygold Companies' long position.| Associated Capital vs. PowerUp Acquisition Corp | Associated Capital vs. Aurora Innovation | Associated Capital vs. HUMANA INC | Associated Capital vs. Aquagold International |
| Marygold Companies vs. MFS Investment Grade | Marygold Companies vs. Invesco High Income | Marygold Companies vs. Eaton Vance National | Marygold Companies vs. Nuveen California Select |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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