Correlation Between Emerge Commerce and MarineMax
Can any of the company-specific risk be diversified away by investing in both Emerge Commerce 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 Emerge Commerce and MarineMax into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Emerge Commerce and MarineMax, you can compare the effects of market volatilities on Emerge Commerce 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 Emerge Commerce with a short position of MarineMax. Check out your portfolio center. Please also check ongoing floating volatility patterns of Emerge Commerce and MarineMax.
Diversification Opportunities for Emerge Commerce and MarineMax
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Emerge and MarineMax is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Emerge Commerce and MarineMax in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MarineMax and Emerge Commerce 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 Emerge Commerce 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 Emerge Commerce i.e., Emerge Commerce and MarineMax go up and down completely randomly.
Pair Corralation between Emerge Commerce and MarineMax
Assuming the 90 days horizon Emerge Commerce is expected to generate 35.03 times more return on investment than MarineMax. However, Emerge Commerce is 35.03 times more volatile than MarineMax. It trades about 0.11 of its potential returns per unit of risk. MarineMax is currently generating about 0.03 per unit of risk. If you would invest 2.50 in Emerge Commerce on August 31, 2024 and sell it today you would earn a total of 0.01 from holding Emerge Commerce or generate 0.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Emerge Commerce vs. MarineMax
Performance |
| Timeline |
| Emerge Commerce |
| MarineMax |
Emerge Commerce and MarineMax Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Emerge Commerce and MarineMax
The main advantage of trading using opposite Emerge Commerce and MarineMax positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Emerge Commerce 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.| Emerge Commerce vs. Phonex Inc | Emerge Commerce vs. Delivery Hero SE | Emerge Commerce vs. 1StdibsCom | Emerge Commerce vs. Natural Health Trend |
| 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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