Correlation Between Franchise and MarineMax
Can any of the company-specific risk be diversified away by investing in both Franchise 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 Franchise and MarineMax into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franchise Group and MarineMax, you can compare the effects of market volatilities on Franchise 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 Franchise with a short position of MarineMax. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franchise and MarineMax.
Diversification Opportunities for Franchise and MarineMax
Modest diversification
The 3 months correlation between Franchise and MarineMax is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Franchise Group and MarineMax in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MarineMax and Franchise 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 Franchise Group 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 Franchise i.e., Franchise and MarineMax go up and down completely randomly.
Pair Corralation between Franchise and MarineMax
If you would invest 3,004 in MarineMax on August 31, 2024 and sell it today you would earn a total of 248.00 from holding MarineMax or generate 8.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Franchise Group vs. MarineMax
Performance |
| Timeline |
| Franchise Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| MarineMax |
Franchise and MarineMax Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franchise and MarineMax
The main advantage of trading using opposite Franchise and MarineMax positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franchise 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.| Franchise vs. Mega Uranium | Franchise vs. Laramide Resources | Franchise vs. NXG NextGen Infrastructure | Franchise vs. Pinetree Capital |
| 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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