Correlation Between Glory Star and Marchex
Can any of the company-specific risk be diversified away by investing in both Glory Star and Marchex 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 Glory Star and Marchex into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Glory Star New and Marchex, you can compare the effects of market volatilities on Glory Star and Marchex 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 Glory Star with a short position of Marchex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Glory Star and Marchex.
Diversification Opportunities for Glory Star and Marchex
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Glory and Marchex is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Glory Star New and Marchex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marchex and Glory Star 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 Glory Star New are associated (or correlated) with Marchex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marchex has no effect on the direction of Glory Star i.e., Glory Star and Marchex go up and down completely randomly.
Pair Corralation between Glory Star and Marchex
If you would invest 138.00 in Marchex on September 1, 2024 and sell it today you would earn a total of 44.00 from holding Marchex or generate 31.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 0.79% |
| Values | Daily Returns |
Glory Star New vs. Marchex
Performance |
| Timeline |
| Glory Star New |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Marchex |
Glory Star and Marchex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Glory Star and Marchex
The main advantage of trading using opposite Glory Star and Marchex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Glory Star position performs unexpectedly, Marchex 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 Marchex will offset losses from the drop in Marchex's long position.| Glory Star vs. Global Payout | Glory Star vs. Clubhouse Media Group | Glory Star vs. ZW Data Action | Glory Star vs. MGO Global Common |
| Marchex vs. Entravision Communications | Marchex vs. Direct Digital Holdings | Marchex vs. Cimpress NV | Marchex vs. Townsquare Media |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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