Correlation Between Marathon Digital and Oppenheimer Holdings
Can any of the company-specific risk be diversified away by investing in both Marathon Digital and Oppenheimer Holdings 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 Oppenheimer Holdings 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 Oppenheimer Holdings, you can compare the effects of market volatilities on Marathon Digital and Oppenheimer Holdings 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 Oppenheimer Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marathon Digital and Oppenheimer Holdings.
Diversification Opportunities for Marathon Digital and Oppenheimer Holdings
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Marathon and Oppenheimer is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Marathon Digital Holdings and Oppenheimer Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oppenheimer Holdings 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 Oppenheimer Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oppenheimer Holdings has no effect on the direction of Marathon Digital i.e., Marathon Digital and Oppenheimer Holdings go up and down completely randomly.
Pair Corralation between Marathon Digital and Oppenheimer Holdings
Given the investment horizon of 90 days Marathon Digital Holdings is expected to generate 4.95 times more return on investment than Oppenheimer Holdings. However, Marathon Digital is 4.95 times more volatile than Oppenheimer Holdings. It trades about 0.28 of its potential returns per unit of risk. Oppenheimer Holdings is currently generating about 0.27 per unit of risk. If you would invest 1,550 in Marathon Digital Holdings on September 4, 2024 and sell it today you would earn a total of 1,013 from holding Marathon Digital Holdings or generate 65.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Marathon Digital Holdings vs. Oppenheimer Holdings
Performance |
| Timeline |
| Marathon Digital Holdings |
| Oppenheimer Holdings |
Marathon Digital and Oppenheimer Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marathon Digital and Oppenheimer Holdings
The main advantage of trading using opposite Marathon Digital and Oppenheimer Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marathon Digital position performs unexpectedly, Oppenheimer Holdings 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 Oppenheimer Holdings will offset losses from the drop in Oppenheimer Holdings' long position.| Marathon Digital vs. Hut 8 Corp | Marathon Digital vs. CleanSpark | Marathon Digital vs. Bit Digital | Marathon Digital vs. Bitfarms |
| Oppenheimer Holdings vs. Goldman Sachs Group | Oppenheimer Holdings vs. Applied Blockchain | Oppenheimer Holdings vs. Hut 8 Corp | Oppenheimer Holdings 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Stocks Directory Find actively traded stocks across global markets | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |