Correlation Between Maritime Resources and Benton Resources
Can any of the company-specific risk be diversified away by investing in both Maritime Resources and Benton Resources 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 Maritime Resources and Benton Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Maritime Resources Corp and Benton Resources, you can compare the effects of market volatilities on Maritime Resources and Benton Resources 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 Maritime Resources with a short position of Benton Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maritime Resources and Benton Resources.
Diversification Opportunities for Maritime Resources and Benton Resources
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Maritime and Benton is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Maritime Resources Corp and Benton Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Benton Resources and Maritime Resources 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 Maritime Resources Corp are associated (or correlated) with Benton Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Benton Resources has no effect on the direction of Maritime Resources i.e., Maritime Resources and Benton Resources go up and down completely randomly.
Pair Corralation between Maritime Resources and Benton Resources
Assuming the 90 days horizon Maritime Resources is expected to generate 1.53 times less return on investment than Benton Resources. But when comparing it to its historical volatility, Maritime Resources Corp is 1.47 times less risky than Benton Resources. It trades about 0.04 of its potential returns per unit of risk. Benton Resources is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 6.00 in Benton Resources on September 2, 2024 and sell it today you would earn a total of 1.50 from holding Benton Resources or generate 25.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Maritime Resources Corp vs. Benton Resources
Performance |
| Timeline |
| Maritime Resources Corp |
| Benton Resources |
Maritime Resources and Benton Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maritime Resources and Benton Resources
The main advantage of trading using opposite Maritime Resources and Benton Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maritime Resources position performs unexpectedly, Benton Resources 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 Benton Resources will offset losses from the drop in Benton Resources' long position.| Maritime Resources vs. Kesselrun Resources | Maritime Resources vs. Tristar Gold | Maritime Resources vs. Benton Resources | Maritime Resources vs. Cartier Resources |
| Benton Resources vs. Avrupa Minerals | Benton Resources vs. Maritime Resources Corp | Benton Resources vs. Chibougamau Independent Mines | Benton Resources vs. Angkor Resources 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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