Correlation Between MarineMax and Big 5
Can any of the company-specific risk be diversified away by investing in both MarineMax and Big 5 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 Big 5 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MarineMax and Big 5 Sporting, you can compare the effects of market volatilities on MarineMax and Big 5 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 Big 5. Check out your portfolio center. Please also check ongoing floating volatility patterns of MarineMax and Big 5.
Diversification Opportunities for MarineMax and Big 5
Significant diversification
The 3 months correlation between MarineMax and Big is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding MarineMax and Big 5 Sporting in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Big 5 Sporting 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 Big 5. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Big 5 Sporting has no effect on the direction of MarineMax i.e., MarineMax and Big 5 go up and down completely randomly.
Pair Corralation between MarineMax and Big 5
Considering the 90-day investment horizon MarineMax is expected to generate 0.71 times more return on investment than Big 5. However, MarineMax is 1.42 times less risky than Big 5. It trades about -0.03 of its potential returns per unit of risk. Big 5 Sporting is currently generating about -0.03 per unit of risk. If you would invest 3,361 in MarineMax on October 31, 2024 and sell it today you would lose (460.00) from holding MarineMax or give up 13.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MarineMax vs. Big 5 Sporting
Performance |
| Timeline |
| MarineMax |
| Big 5 Sporting |
MarineMax and Big 5 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MarineMax and Big 5
The main advantage of trading using opposite MarineMax and Big 5 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MarineMax position performs unexpectedly, Big 5 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 Big 5 will offset losses from the drop in Big 5's long position.| MarineMax vs. National Vision Holdings | MarineMax vs. Sally Beauty Holdings | MarineMax vs. Sportsmans | MarineMax vs. 1 800 FLOWERSCOM |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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