Correlation Between MarineMax and Original Bark
Can any of the company-specific risk be diversified away by investing in both MarineMax and Original Bark 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 MarineMax and Original Bark into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MarineMax and Original Bark Co, you can compare the effects of market volatilities on MarineMax and Original Bark 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 MarineMax with a short position of Original Bark. Check out your portfolio center. Please also check ongoing floating volatility patterns of MarineMax and Original Bark.
Diversification Opportunities for MarineMax and Original Bark
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between MarineMax and Original is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding MarineMax and Original Bark Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Original Bark and MarineMax 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 MarineMax are associated (or correlated) with Original Bark. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Original Bark has no effect on the direction of MarineMax i.e., MarineMax and Original Bark go up and down completely randomly.
Pair Corralation between MarineMax and Original Bark
Considering the 90-day investment horizon MarineMax is expected to generate 3.96 times less return on investment than Original Bark. But when comparing it to its historical volatility, MarineMax is 1.1 times less risky than Original Bark. It trades about 0.11 of its potential returns per unit of risk. Original Bark Co is currently generating about 0.41 of returns per unit of risk over similar time horizon. If you would invest 140.00 in Original Bark Co on August 28, 2024 and sell it today you would earn a total of 59.00 from holding Original Bark Co or generate 42.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MarineMax vs. Original Bark Co
Performance |
| Timeline |
| MarineMax |
| Original Bark |
MarineMax and Original Bark Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MarineMax and Original Bark
The main advantage of trading using opposite MarineMax and Original Bark positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MarineMax position performs unexpectedly, Original Bark 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 Original Bark will offset losses from the drop in Original Bark's long position.| MarineMax vs. National Vision Holdings | MarineMax vs. Sally Beauty Holdings | MarineMax vs. Sportsmans | MarineMax vs. 1 800 FLOWERSCOM |
| Original Bark vs. Ulta Beauty | Original Bark vs. RH | Original Bark vs. Dicks Sporting Goods | Original Bark vs. AutoZone |
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 CEOs Directory module to screen CEOs from public companies around the world.
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