Correlation Between MarineMax and Caseys General
Can any of the company-specific risk be diversified away by investing in both MarineMax and Caseys General 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 Caseys General into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MarineMax and Caseys General Stores, you can compare the effects of market volatilities on MarineMax and Caseys General 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 Caseys General. Check out your portfolio center. Please also check ongoing floating volatility patterns of MarineMax and Caseys General.
Diversification Opportunities for MarineMax and Caseys General
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MarineMax and Caseys is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding MarineMax and Caseys General Stores in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Caseys General Stores 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 Caseys General. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Caseys General Stores has no effect on the direction of MarineMax i.e., MarineMax and Caseys General go up and down completely randomly.
Pair Corralation between MarineMax and Caseys General
Considering the 90-day investment horizon MarineMax is expected to generate 6.85 times less return on investment than Caseys General. In addition to that, MarineMax is 1.98 times more volatile than Caseys General Stores. It trades about 0.01 of its total potential returns per unit of risk. Caseys General Stores is currently generating about 0.1 per unit of volatility. If you would invest 30,331 in Caseys General Stores on August 27, 2024 and sell it today you would earn a total of 12,457 from holding Caseys General Stores or generate 41.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MarineMax vs. Caseys General Stores
Performance |
| Timeline |
| MarineMax |
| Caseys General Stores |
MarineMax and Caseys General Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MarineMax and Caseys General
The main advantage of trading using opposite MarineMax and Caseys General positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MarineMax position performs unexpectedly, Caseys General 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 Caseys General will offset losses from the drop in Caseys General's long position.| MarineMax vs. Oriental Culture Holding | MarineMax vs. Hour Loop | MarineMax vs. Qurate Retail Series | MarineMax vs. Emerge Commerce |
| Caseys General vs. MOGU Inc | Caseys General vs. iPower Inc | Caseys General vs. Jeffs Brands | Caseys General vs. Kidpik 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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