Correlation Between Cboe UK and Marathon Oil
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By analyzing existing cross correlation between Cboe UK Consumer and Marathon Oil Corp, you can compare the effects of market volatilities on Cboe UK and Marathon Oil 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 Cboe UK with a short position of Marathon Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cboe UK and Marathon Oil.
Diversification Opportunities for Cboe UK and Marathon Oil
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Cboe and Marathon is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Cboe UK Consumer and Marathon Oil Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marathon Oil Corp and Cboe UK 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 Cboe UK Consumer are associated (or correlated) with Marathon Oil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marathon Oil Corp has no effect on the direction of Cboe UK i.e., Cboe UK and Marathon Oil go up and down completely randomly.
Pair Corralation between Cboe UK and Marathon Oil
Assuming the 90 days trading horizon Cboe UK Consumer is expected to generate 0.55 times more return on investment than Marathon Oil. However, Cboe UK Consumer is 1.82 times less risky than Marathon Oil. It trades about 0.13 of its potential returns per unit of risk. Marathon Oil Corp is currently generating about 0.04 per unit of risk. If you would invest 2,376,741 in Cboe UK Consumer on September 14, 2024 and sell it today you would earn a total of 924,637 from holding Cboe UK Consumer or generate 38.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 91.97% |
| Values | Daily Returns |
Cboe UK Consumer vs. Marathon Oil Corp
Performance |
| Timeline |
Cboe UK and Marathon Oil Volatility Contrast
Predicted Return Density |
| Returns |
Cboe UK Consumer
Pair trading matchups for Cboe UK
Marathon Oil Corp
Pair trading matchups for Marathon Oil
Pair Trading with Cboe UK and Marathon Oil
The main advantage of trading using opposite Cboe UK and Marathon Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cboe UK position performs unexpectedly, Marathon Oil 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 Marathon Oil will offset losses from the drop in Marathon Oil's long position.| Cboe UK vs. Fidelity National Information | Cboe UK vs. Naked Wines plc | Cboe UK vs. Alliance Data Systems | Cboe UK vs. Abingdon Health Plc |
| Marathon Oil vs. Broadridge Financial Solutions | Marathon Oil vs. Vulcan Materials Co | Marathon Oil vs. Morgan Advanced Materials | Marathon Oil vs. Taiwan Semiconductor Manufacturing |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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