Correlation Between FalconStor Software and Marin Software
Can any of the company-specific risk be diversified away by investing in both FalconStor Software and Marin Software 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 FalconStor Software and Marin Software into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FalconStor Software and Marin Software, you can compare the effects of market volatilities on FalconStor Software and Marin Software 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 FalconStor Software with a short position of Marin Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of FalconStor Software and Marin Software.
Diversification Opportunities for FalconStor Software and Marin Software
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between FalconStor and Marin is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding FalconStor Software and Marin Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marin Software and FalconStor Software 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 FalconStor Software are associated (or correlated) with Marin Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marin Software has no effect on the direction of FalconStor Software i.e., FalconStor Software and Marin Software go up and down completely randomly.
Pair Corralation between FalconStor Software and Marin Software
If you would invest (100.00) in FalconStor Software on November 9, 2024 and sell it today you would earn a total of 100.00 from holding FalconStor Software or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
FalconStor Software vs. Marin Software
Performance |
| Timeline |
| FalconStor Software |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| Marin Software |
FalconStor Software and Marin Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FalconStor Software and Marin Software
The main advantage of trading using opposite FalconStor Software and Marin Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FalconStor Software position performs unexpectedly, Marin Software 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 Marin Software will offset losses from the drop in Marin Software's long position.| FalconStor Software vs. Jfrog | FalconStor Software vs. Fastly Inc | FalconStor Software vs. Bill Com Holdings | FalconStor Software vs. Asana Inc |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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