Correlation Between Alkami Technology and Marin Software
Can any of the company-specific risk be diversified away by investing in both Alkami Technology and Marin Software 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 Alkami Technology and Marin Software into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alkami Technology and Marin Software, you can compare the effects of market volatilities on Alkami Technology and Marin Software 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 Alkami Technology with a short position of Marin Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alkami Technology and Marin Software.
Diversification Opportunities for Alkami Technology and Marin Software
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Alkami and Marin is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Alkami Technology and Marin Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marin Software and Alkami Technology 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 Alkami Technology are associated (or correlated) with Marin Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marin Software has no effect on the direction of Alkami Technology i.e., Alkami Technology and Marin Software go up and down completely randomly.
Pair Corralation between Alkami Technology and Marin Software
Given the investment horizon of 90 days Alkami Technology is expected to generate 0.32 times more return on investment than Marin Software. However, Alkami Technology is 3.17 times less risky than Marin Software. It trades about 0.11 of its potential returns per unit of risk. Marin Software is currently generating about 0.0 per unit of risk. If you would invest 1,273 in Alkami Technology on August 24, 2024 and sell it today you would earn a total of 2,796 from holding Alkami Technology or generate 219.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alkami Technology vs. Marin Software
Performance |
| Timeline |
| Alkami Technology |
| Marin Software |
Alkami Technology and Marin Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alkami Technology and Marin Software
The main advantage of trading using opposite Alkami Technology and Marin Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alkami Technology position performs unexpectedly, Marin Software 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 Marin Software will offset losses from the drop in Marin Software's long position.| Alkami Technology vs. Agilysys | Alkami Technology vs. ADEIA P | Alkami Technology vs. Paycor HCM | Alkami Technology vs. Paylocity Holdng |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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