Correlation Between Marathon Digital and Interactive Brokers
Can any of the company-specific risk be diversified away by investing in both Marathon Digital and Interactive Brokers 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 Interactive Brokers 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 Interactive Brokers Group, you can compare the effects of market volatilities on Marathon Digital and Interactive Brokers 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 Interactive Brokers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marathon Digital and Interactive Brokers.
Diversification Opportunities for Marathon Digital and Interactive Brokers
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Marathon and Interactive is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Marathon Digital Holdings and Interactive Brokers Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Interactive Brokers 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 Interactive Brokers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Interactive Brokers has no effect on the direction of Marathon Digital i.e., Marathon Digital and Interactive Brokers go up and down completely randomly.
Pair Corralation between Marathon Digital and Interactive Brokers
Given the investment horizon of 90 days Marathon Digital Holdings is expected to generate 4.18 times more return on investment than Interactive Brokers. However, Marathon Digital is 4.18 times more volatile than Interactive Brokers Group. It trades about 0.08 of its potential returns per unit of risk. Interactive Brokers Group is currently generating about 0.11 per unit of risk. If you would invest 614.00 in Marathon Digital Holdings on August 25, 2024 and sell it today you would earn a total of 1,990 from holding Marathon Digital Holdings or generate 324.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Marathon Digital Holdings vs. Interactive Brokers Group
Performance |
| Timeline |
| Marathon Digital Holdings |
| Interactive Brokers |
Marathon Digital and Interactive Brokers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marathon Digital and Interactive Brokers
The main advantage of trading using opposite Marathon Digital and Interactive Brokers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marathon Digital position performs unexpectedly, Interactive Brokers 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 Interactive Brokers will offset losses from the drop in Interactive Brokers' long position.| Marathon Digital vs. Hut 8 Corp | Marathon Digital vs. CleanSpark | Marathon Digital vs. Bit Digital | Marathon Digital vs. Bitfarms |
| Interactive Brokers vs. Sellas Life Sciences | Interactive Brokers vs. Ardelyx | Interactive Brokers vs. Sweetgreen | Interactive Brokers vs. Yum Brands |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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