Correlation Between Genworth Financial and Martin Marietta
Can any of the company-specific risk be diversified away by investing in both Genworth Financial and Martin Marietta 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 Genworth Financial and Martin Marietta into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Genworth Financial and Martin Marietta Materials, you can compare the effects of market volatilities on Genworth Financial and Martin Marietta 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 Genworth Financial with a short position of Martin Marietta. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genworth Financial and Martin Marietta.
Diversification Opportunities for Genworth Financial and Martin Marietta
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Genworth and Martin is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Genworth Financial and Martin Marietta Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Martin Marietta Materials and Genworth Financial 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 Genworth Financial are associated (or correlated) with Martin Marietta. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Martin Marietta Materials has no effect on the direction of Genworth Financial i.e., Genworth Financial and Martin Marietta go up and down completely randomly.
Pair Corralation between Genworth Financial and Martin Marietta
If you would invest 1,114,857 in Martin Marietta Materials on November 2, 2024 and sell it today you would earn a total of 3,343 from holding Martin Marietta Materials or generate 0.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Genworth Financial vs. Martin Marietta Materials
Performance |
| Timeline |
| Genworth Financial |
| Martin Marietta Materials |
Genworth Financial and Martin Marietta Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genworth Financial and Martin Marietta
The main advantage of trading using opposite Genworth Financial and Martin Marietta positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genworth Financial position performs unexpectedly, Martin Marietta 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 Martin Marietta will offset losses from the drop in Martin Marietta's long position.| Genworth Financial vs. Deutsche Bank Aktiengesellschaft | Genworth Financial vs. Capital One Financial | Genworth Financial vs. Taiwan Semiconductor Manufacturing | Genworth Financial vs. The Home Depot |
| Martin Marietta vs. First Republic Bank | Martin Marietta vs. Genworth Financial | Martin Marietta vs. Ameriprise Financial | Martin Marietta vs. Monster Beverage Corp |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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