Correlation Between Here Media and Marine Products
Can any of the company-specific risk be diversified away by investing in both Here Media and Marine Products 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 Here Media and Marine Products into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Here Media and Marine Products, you can compare the effects of market volatilities on Here Media and Marine Products 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 Here Media with a short position of Marine Products. Check out your portfolio center. Please also check ongoing floating volatility patterns of Here Media and Marine Products.
Diversification Opportunities for Here Media and Marine Products
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Here and Marine is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Here Media and Marine Products in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marine Products and Here Media 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 Here Media are associated (or correlated) with Marine Products. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marine Products has no effect on the direction of Here Media i.e., Here Media and Marine Products go up and down completely randomly.
Pair Corralation between Here Media and Marine Products
Assuming the 90 days horizon Here Media is expected to generate 2.48 times more return on investment than Marine Products. However, Here Media is 2.48 times more volatile than Marine Products. It trades about 0.06 of its potential returns per unit of risk. Marine Products is currently generating about 0.02 per unit of risk. If you would invest 0.01 in Here Media on September 2, 2024 and sell it today you would earn a total of 0.01 from holding Here Media or generate 100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Here Media vs. Marine Products
Performance |
| Timeline |
| Here Media |
| Marine Products |
Here Media and Marine Products Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Here Media and Marine Products
The main advantage of trading using opposite Here Media and Marine Products positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Here Media position performs unexpectedly, Marine Products 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 Marine Products will offset losses from the drop in Marine Products' long position.| Here Media vs. The Wendys Co | Here Media vs. Biglari Holdings | Here Media vs. Dine Brands Global | Here Media vs. Dalata Hotel Group |
| Marine Products vs. LCI Industries | Marine Products vs. MCBC Holdings | Marine Products vs. Winnebago Industries | Marine Products vs. Thor Industries |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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