Correlation Between Fathom Holdings and Murano Global
Can any of the company-specific risk be diversified away by investing in both Fathom Holdings and Murano Global 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 Fathom Holdings and Murano Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fathom Holdings and Murano Global Investments, you can compare the effects of market volatilities on Fathom Holdings and Murano Global 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 Fathom Holdings with a short position of Murano Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fathom Holdings and Murano Global.
Diversification Opportunities for Fathom Holdings and Murano Global
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Fathom and Murano is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Fathom Holdings and Murano Global Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Murano Global Investments and Fathom Holdings 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 Fathom Holdings are associated (or correlated) with Murano Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Murano Global Investments has no effect on the direction of Fathom Holdings i.e., Fathom Holdings and Murano Global go up and down completely randomly.
Pair Corralation between Fathom Holdings and Murano Global
Given the investment horizon of 90 days Fathom Holdings is expected to under-perform the Murano Global. But the stock apears to be less risky and, when comparing its historical volatility, Fathom Holdings is 2.28 times less risky than Murano Global. The stock trades about -0.05 of its potential returns per unit of risk. The Murano Global Investments is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,070 in Murano Global Investments on September 12, 2024 and sell it today you would lose (18.00) from holding Murano Global Investments or give up 1.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 52.84% |
| Values | Daily Returns |
Fathom Holdings vs. Murano Global Investments
Performance |
| Timeline |
| Fathom Holdings |
| Murano Global Investments |
Fathom Holdings and Murano Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fathom Holdings and Murano Global
The main advantage of trading using opposite Fathom Holdings and Murano Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fathom Holdings position performs unexpectedly, Murano Global 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 Murano Global will offset losses from the drop in Murano Global's long position.| Fathom Holdings vs. New England Realty | Fathom Holdings vs. Frp Holdings Ord | Fathom Holdings vs. Marcus Millichap | Fathom Holdings vs. Transcontinental Realty Investors |
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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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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