Correlation Between Marathon Digital and Raymond James
Can any of the company-specific risk be diversified away by investing in both Marathon Digital and Raymond James 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 Raymond James 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 Raymond James Financial, you can compare the effects of market volatilities on Marathon Digital and Raymond James 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 Raymond James. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marathon Digital and Raymond James.
Diversification Opportunities for Marathon Digital and Raymond James
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Marathon and Raymond is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Marathon Digital Holdings and Raymond James Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Raymond James Financial 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 Raymond James. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Raymond James Financial has no effect on the direction of Marathon Digital i.e., Marathon Digital and Raymond James go up and down completely randomly.
Pair Corralation between Marathon Digital and Raymond James
Given the investment horizon of 90 days Marathon Digital Holdings is expected to generate 3.61 times more return on investment than Raymond James. However, Marathon Digital is 3.61 times more volatile than Raymond James Financial. It trades about 0.17 of its potential returns per unit of risk. Raymond James Financial is currently generating about 0.3 per unit of risk. If you would invest 1,526 in Marathon Digital Holdings on September 3, 2024 and sell it today you would earn a total of 1,216 from holding Marathon Digital Holdings or generate 79.69% 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. Raymond James Financial
Performance |
| Timeline |
| Marathon Digital Holdings |
| Raymond James Financial |
Marathon Digital and Raymond James Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marathon Digital and Raymond James
The main advantage of trading using opposite Marathon Digital and Raymond James positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marathon Digital position performs unexpectedly, Raymond James 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 Raymond James will offset losses from the drop in Raymond James' long position.| Marathon Digital vs. Hut 8 Corp | Marathon Digital vs. CleanSpark | Marathon Digital vs. Bit Digital | Marathon Digital vs. Bitfarms |
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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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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