Correlation Between Fox Corp and Marcus
Can any of the company-specific risk be diversified away by investing in both Fox Corp and Marcus 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 Fox Corp and Marcus into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fox Corp Class and Marcus, you can compare the effects of market volatilities on Fox Corp and Marcus 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 Fox Corp with a short position of Marcus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fox Corp and Marcus.
Diversification Opportunities for Fox Corp and Marcus
Very good diversification
The 3 months correlation between Fox and Marcus is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Fox Corp Class and Marcus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marcus and Fox Corp 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 Fox Corp Class are associated (or correlated) with Marcus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marcus has no effect on the direction of Fox Corp i.e., Fox Corp and Marcus go up and down completely randomly.
Pair Corralation between Fox Corp and Marcus
Considering the 90-day investment horizon Fox Corp Class is expected to generate 0.91 times more return on investment than Marcus. However, Fox Corp Class is 1.1 times less risky than Marcus. It trades about 0.27 of its potential returns per unit of risk. Marcus is currently generating about 0.0 per unit of risk. If you would invest 3,889 in Fox Corp Class on November 1, 2024 and sell it today you would earn a total of 948.00 from holding Fox Corp Class or generate 24.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fox Corp Class vs. Marcus
Performance |
| Timeline |
| Fox Corp Class |
| Marcus |
Fox Corp and Marcus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fox Corp and Marcus
The main advantage of trading using opposite Fox Corp and Marcus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fox Corp position performs unexpectedly, Marcus 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 Marcus will offset losses from the drop in Marcus' long position.| Fox Corp vs. News Corp A | Fox Corp vs. News Corp B | Fox Corp vs. Paramount Global Class | Fox Corp vs. Liberty Media |
| Marcus vs. News Corp A | Marcus vs. Liberty Media | Marcus vs. Warner Music Group | Marcus vs. Fox Corp Class |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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