Correlation Between Marathon Digital and Garden Stage
Can any of the company-specific risk be diversified away by investing in both Marathon Digital and Garden Stage 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 Garden Stage 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 Garden Stage Limited, you can compare the effects of market volatilities on Marathon Digital and Garden Stage 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 Garden Stage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marathon Digital and Garden Stage.
Diversification Opportunities for Marathon Digital and Garden Stage
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Marathon and Garden is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Marathon Digital Holdings and Garden Stage Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Garden Stage Limited 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 Garden Stage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Garden Stage Limited has no effect on the direction of Marathon Digital i.e., Marathon Digital and Garden Stage go up and down completely randomly.
Pair Corralation between Marathon Digital and Garden Stage
Given the investment horizon of 90 days Marathon Digital Holdings is expected to generate 0.37 times more return on investment than Garden Stage. However, Marathon Digital Holdings is 2.71 times less risky than Garden Stage. It trades about 0.07 of its potential returns per unit of risk. Garden Stage Limited is currently generating about 0.02 per unit of risk. If you would invest 1,465 in Marathon Digital Holdings on September 4, 2024 and sell it today you would earn a total of 1,048 from holding Marathon Digital Holdings or generate 71.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Marathon Digital Holdings vs. Garden Stage Limited
Performance |
| Timeline |
| Marathon Digital Holdings |
| Garden Stage Limited |
Marathon Digital and Garden Stage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marathon Digital and Garden Stage
The main advantage of trading using opposite Marathon Digital and Garden Stage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marathon Digital position performs unexpectedly, Garden Stage 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 Garden Stage will offset losses from the drop in Garden Stage's long position.| Marathon Digital vs. Hut 8 Corp | Marathon Digital vs. CleanSpark | Marathon Digital vs. Bit Digital | Marathon Digital vs. Bitfarms |
| Garden Stage vs. Goldman Sachs Group | Garden Stage vs. Applied Blockchain | Garden Stage vs. Hut 8 Corp | Garden Stage vs. Bitfarms |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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