Correlation Between Marathon Digital and Evercore Partners
Can any of the company-specific risk be diversified away by investing in both Marathon Digital and Evercore Partners 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 Marathon Digital and Evercore Partners into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Marathon Digital Holdings and Evercore Partners, you can compare the effects of market volatilities on Marathon Digital and Evercore Partners 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 Marathon Digital with a short position of Evercore Partners. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marathon Digital and Evercore Partners.
Diversification Opportunities for Marathon Digital and Evercore Partners
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Marathon and Evercore is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Marathon Digital Holdings and Evercore Partners in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Evercore Partners and Marathon Digital 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 Marathon Digital Holdings are associated (or correlated) with Evercore Partners. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Evercore Partners has no effect on the direction of Marathon Digital i.e., Marathon Digital and Evercore Partners go up and down completely randomly.
Pair Corralation between Marathon Digital and Evercore Partners
Given the investment horizon of 90 days Marathon Digital Holdings is expected to generate 2.71 times more return on investment than Evercore Partners. However, Marathon Digital is 2.71 times more volatile than Evercore Partners. It trades about 0.17 of its potential returns per unit of risk. Evercore Partners is currently generating about 0.23 per unit of risk. If you would invest 1,807 in Marathon Digital Holdings on August 24, 2024 and sell it today you would earn a total of 611.00 from holding Marathon Digital Holdings or generate 33.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Marathon Digital Holdings vs. Evercore Partners
Performance |
| Timeline |
| Marathon Digital Holdings |
| Evercore Partners |
Marathon Digital and Evercore Partners Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marathon Digital and Evercore Partners
The main advantage of trading using opposite Marathon Digital and Evercore Partners positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marathon Digital position performs unexpectedly, Evercore Partners 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 Evercore Partners will offset losses from the drop in Evercore Partners' long position.| Marathon Digital vs. Hut 8 Corp | Marathon Digital vs. CleanSpark | Marathon Digital vs. Bit Digital | Marathon Digital vs. Bitfarms |
| Evercore Partners vs. PJT Partners | Evercore Partners vs. Moelis Co | Evercore Partners vs. Perella Weinberg Partners | Evercore Partners vs. Jefferies Financial Group |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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