Correlation Between Cboe UK and Marks
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By analyzing existing cross correlation between Cboe UK Consumer and Marks and Spencer, you can compare the effects of market volatilities on Cboe UK and Marks 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 Marks. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cboe UK and Marks.
Diversification Opportunities for Cboe UK and Marks
Very weak diversification
The 3 months correlation between Cboe and Marks is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Cboe UK Consumer and Marks and Spencer in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marks and Spencer 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 Marks. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marks and Spencer has no effect on the direction of Cboe UK i.e., Cboe UK and Marks go up and down completely randomly.
Pair Corralation between Cboe UK and Marks
Assuming the 90 days trading horizon Cboe UK is expected to generate 1.87 times less return on investment than Marks. But when comparing it to its historical volatility, Cboe UK Consumer is 1.73 times less risky than Marks. It trades about 0.13 of its potential returns per unit of risk. Marks and Spencer is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 21,229 in Marks and Spencer on September 19, 2024 and sell it today you would earn a total of 17,921 from holding Marks and Spencer or generate 84.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.99% |
| Values | Daily Returns |
Cboe UK Consumer vs. Marks and Spencer
Performance |
| Timeline |
Cboe UK and Marks Volatility Contrast
Predicted Return Density |
| Returns |
Cboe UK Consumer
Pair trading matchups for Cboe UK
Marks and Spencer
Pair trading matchups for Marks
Pair Trading with Cboe UK and Marks
The main advantage of trading using opposite Cboe UK and Marks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cboe UK position performs unexpectedly, Marks 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 Marks will offset losses from the drop in Marks' long position.| Cboe UK vs. Porvair plc | Cboe UK vs. Norwegian Air Shuttle | Cboe UK vs. Batm Advanced Communications | Cboe UK vs. Charter Communications Cl |
| Marks vs. Kaufman Et Broad | Marks vs. LPKF Laser Electronics | Marks vs. Southern Copper Corp | Marks vs. Fevertree Drinks Plc |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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