Correlation Between Marathon Digital and Perella Weinberg
Can any of the company-specific risk be diversified away by investing in both Marathon Digital and Perella Weinberg 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 Perella Weinberg 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 Perella Weinberg Partners, you can compare the effects of market volatilities on Marathon Digital and Perella Weinberg 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 Perella Weinberg. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marathon Digital and Perella Weinberg.
Diversification Opportunities for Marathon Digital and Perella Weinberg
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Marathon and Perella is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Marathon Digital Holdings and Perella Weinberg Partners in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Perella Weinberg 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 Perella Weinberg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Perella Weinberg Partners has no effect on the direction of Marathon Digital i.e., Marathon Digital and Perella Weinberg go up and down completely randomly.
Pair Corralation between Marathon Digital and Perella Weinberg
Given the investment horizon of 90 days Marathon Digital Holdings is expected to generate 3.06 times more return on investment than Perella Weinberg. However, Marathon Digital is 3.06 times more volatile than Perella Weinberg Partners. It trades about 0.09 of its potential returns per unit of risk. Perella Weinberg Partners is currently generating about 0.1 per unit of risk. If you would invest 324.00 in Marathon Digital Holdings on September 14, 2024 and sell it today you would earn a total of 1,934 from holding Marathon Digital Holdings or generate 596.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.8% |
| Values | Daily Returns |
Marathon Digital Holdings vs. Perella Weinberg Partners
Performance |
| Timeline |
| Marathon Digital Holdings |
| Perella Weinberg Partners |
Marathon Digital and Perella Weinberg Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marathon Digital and Perella Weinberg
The main advantage of trading using opposite Marathon Digital and Perella Weinberg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marathon Digital position performs unexpectedly, Perella Weinberg 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 Perella Weinberg will offset losses from the drop in Perella Weinberg's long position.| Marathon Digital vs. Hut 8 Corp | Marathon Digital vs. CleanSpark | Marathon Digital vs. Bit Digital | Marathon Digital vs. Bitfarms |
| Perella Weinberg vs. Evercore Partners | Perella Weinberg vs. Lazard | Perella Weinberg vs. Piper Sandler Companies | Perella Weinberg vs. Moelis Co |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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