Correlation Between Interpublic Group and Marcus
Can any of the company-specific risk be diversified away by investing in both Interpublic Group and Marcus 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 Interpublic Group and Marcus into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Interpublic Group of and Marcus, you can compare the effects of market volatilities on Interpublic Group and Marcus 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 Interpublic Group with a short position of Marcus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Interpublic Group and Marcus.
Diversification Opportunities for Interpublic Group and Marcus
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Interpublic and Marcus is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Interpublic Group of and Marcus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marcus and Interpublic Group 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 Interpublic Group of are associated (or correlated) with Marcus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marcus has no effect on the direction of Interpublic Group i.e., Interpublic Group and Marcus go up and down completely randomly.
Pair Corralation between Interpublic Group and Marcus
Considering the 90-day investment horizon Interpublic Group is expected to generate 12.7 times less return on investment than Marcus. But when comparing it to its historical volatility, Interpublic Group of is 1.11 times less risky than Marcus. It trades about 0.0 of its potential returns per unit of risk. Marcus is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,588 in Marcus on August 27, 2024 and sell it today you would earn a total of 615.00 from holding Marcus or generate 38.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Interpublic Group of vs. Marcus
Performance |
| Timeline |
| Interpublic Group |
| Marcus |
Interpublic Group and Marcus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Interpublic Group and Marcus
The main advantage of trading using opposite Interpublic Group and Marcus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Interpublic Group position performs unexpectedly, Marcus 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 Marcus will offset losses from the drop in Marcus' long position.| Interpublic Group vs. Ziff Davis | Interpublic Group vs. Criteo Sa | Interpublic Group vs. WPP PLC ADR | Interpublic Group vs. Integral Ad Science |
| Marcus vs. News Corp A | Marcus vs. Liberty Media | Marcus vs. Warner Music Group | Marcus vs. Fox Corp Class |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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