Correlation Between Cirmaker Technology and Marex Group
Can any of the company-specific risk be diversified away by investing in both Cirmaker Technology and Marex Group 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 Cirmaker Technology and Marex Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cirmaker Technology and Marex Group plc, you can compare the effects of market volatilities on Cirmaker Technology and Marex Group 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 Cirmaker Technology with a short position of Marex Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cirmaker Technology and Marex Group.
Diversification Opportunities for Cirmaker Technology and Marex Group
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Cirmaker and Marex is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Cirmaker Technology and Marex Group plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marex Group plc and Cirmaker 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 Cirmaker Technology are associated (or correlated) with Marex Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marex Group plc has no effect on the direction of Cirmaker Technology i.e., Cirmaker Technology and Marex Group go up and down completely randomly.
Pair Corralation between Cirmaker Technology and Marex Group
Given the investment horizon of 90 days Cirmaker Technology is expected to generate 38.94 times more return on investment than Marex Group. However, Cirmaker Technology is 38.94 times more volatile than Marex Group plc. It trades about 0.09 of its potential returns per unit of risk. Marex Group plc is currently generating about 0.23 per unit of risk. If you would invest 0.01 in Cirmaker Technology on November 3, 2024 and sell it today you would earn a total of 6.99 from holding Cirmaker Technology or generate 69900.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.19% |
| Values | Daily Returns |
Cirmaker Technology vs. Marex Group plc
Performance |
| Timeline |
| Cirmaker Technology |
| Marex Group plc |
Cirmaker Technology and Marex Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cirmaker Technology and Marex Group
The main advantage of trading using opposite Cirmaker Technology and Marex Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cirmaker Technology position performs unexpectedly, Marex Group 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 Marex Group will offset losses from the drop in Marex Group's long position.| Cirmaker Technology vs. Vishay Precision Group | Cirmaker Technology vs. Kulicke and Soffa | Cirmaker Technology vs. AG Mortgage Investment | Cirmaker Technology vs. Amkor Technology |
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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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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