Correlation Between WM Technology and Marathon Gold
Can any of the company-specific risk be diversified away by investing in both WM Technology and Marathon Gold 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 WM Technology and Marathon Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WM Technology and Marathon Gold, you can compare the effects of market volatilities on WM Technology and Marathon Gold 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 WM Technology with a short position of Marathon Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of WM Technology and Marathon Gold.
Diversification Opportunities for WM Technology and Marathon Gold
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between MAPSW and Marathon is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding WM Technology and Marathon Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marathon Gold and WM Technology 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 WM Technology are associated (or correlated) with Marathon Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marathon Gold has no effect on the direction of WM Technology i.e., WM Technology and Marathon Gold go up and down completely randomly.
Pair Corralation between WM Technology and Marathon Gold
If you would invest 2.90 in WM Technology on August 28, 2024 and sell it today you would earn a total of 0.21 from holding WM Technology or generate 7.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 4.76% |
| Values | Daily Returns |
WM Technology vs. Marathon Gold
Performance |
| Timeline |
| WM Technology |
| Marathon Gold |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
WM Technology and Marathon Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WM Technology and Marathon Gold
The main advantage of trading using opposite WM Technology and Marathon Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WM Technology position performs unexpectedly, Marathon Gold 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 Marathon Gold will offset losses from the drop in Marathon Gold's long position.| WM Technology vs. C3 Ai Inc | WM Technology vs. Workday | WM Technology vs. Intuit Inc | WM Technology vs. Zoom Video Communications |
| Marathon Gold vs. I 80 Gold Corp | Marathon Gold vs. Wesdome Gold Mines | Marathon Gold vs. K92 Mining | Marathon Gold vs. Equinox Gold 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |