Correlation Between GlobalData PLC and Markel Corp
Can any of the company-specific risk be diversified away by investing in both GlobalData PLC and Markel Corp 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 GlobalData PLC and Markel Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GlobalData PLC and Markel Corp, you can compare the effects of market volatilities on GlobalData PLC and Markel Corp 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 GlobalData PLC with a short position of Markel Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of GlobalData PLC and Markel Corp.
Diversification Opportunities for GlobalData PLC and Markel Corp
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between GlobalData and Markel is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding GlobalData PLC and Markel Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Markel Corp and GlobalData PLC 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 GlobalData PLC are associated (or correlated) with Markel Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Markel Corp has no effect on the direction of GlobalData PLC i.e., GlobalData PLC and Markel Corp go up and down completely randomly.
Pair Corralation between GlobalData PLC and Markel Corp
Assuming the 90 days trading horizon GlobalData PLC is expected to under-perform the Markel Corp. In addition to that, GlobalData PLC is 1.84 times more volatile than Markel Corp. It trades about 0.0 of its total potential returns per unit of risk. Markel Corp is currently generating about 0.1 per unit of volatility. If you would invest 173,363 in Markel Corp on October 22, 2024 and sell it today you would earn a total of 4,118 from holding Markel Corp or generate 2.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 94.74% |
| Values | Daily Returns |
GlobalData PLC vs. Markel Corp
Performance |
| Timeline |
| GlobalData PLC |
| Markel Corp |
GlobalData PLC and Markel Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GlobalData PLC and Markel Corp
The main advantage of trading using opposite GlobalData PLC and Markel Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GlobalData PLC position performs unexpectedly, Markel Corp 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 Markel Corp will offset losses from the drop in Markel Corp's long position.| GlobalData PLC vs. Systemair AB | GlobalData PLC vs. BE Semiconductor Industries | GlobalData PLC vs. Clean Power Hydrogen | GlobalData PLC vs. Fidelity National Information |
| Markel Corp vs. Elmos Semiconductor SE | Markel Corp vs. EJF Investments | Markel Corp vs. Evolution Gaming Group | Markel Corp vs. Smithson Investment Trust |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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