Correlation Between Original Bark and MarineMax
Can any of the company-specific risk be diversified away by investing in both Original Bark and MarineMax 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 Original Bark and MarineMax into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Original Bark Co and MarineMax, you can compare the effects of market volatilities on Original Bark and MarineMax 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 Original Bark with a short position of MarineMax. Check out your portfolio center. Please also check ongoing floating volatility patterns of Original Bark and MarineMax.
Diversification Opportunities for Original Bark and MarineMax
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Original and MarineMax is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Original Bark Co and MarineMax in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MarineMax and Original Bark 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 Original Bark Co are associated (or correlated) with MarineMax. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MarineMax has no effect on the direction of Original Bark i.e., Original Bark and MarineMax go up and down completely randomly.
Pair Corralation between Original Bark and MarineMax
Given the investment horizon of 90 days Original Bark is expected to generate 1.22 times less return on investment than MarineMax. But when comparing it to its historical volatility, Original Bark Co is 1.01 times less risky than MarineMax. It trades about 0.06 of its potential returns per unit of risk. MarineMax is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 2,895 in MarineMax on November 1, 2024 and sell it today you would earn a total of 148.00 from holding MarineMax or generate 5.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Original Bark Co vs. MarineMax
Performance |
| Timeline |
| Original Bark |
| MarineMax |
Original Bark and MarineMax Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Original Bark and MarineMax
The main advantage of trading using opposite Original Bark and MarineMax positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Original Bark position performs unexpectedly, MarineMax 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 MarineMax will offset losses from the drop in MarineMax's long position.| Original Bark vs. Ulta Beauty | Original Bark vs. RH | Original Bark vs. Dicks Sporting Goods | Original Bark vs. AutoZone |
| MarineMax vs. National Vision Holdings | MarineMax vs. Sally Beauty Holdings | MarineMax vs. Sportsmans | MarineMax vs. 1 800 FLOWERSCOM |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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