Correlation Between Marchex and Globavend Holdings
Can any of the company-specific risk be diversified away by investing in both Marchex and Globavend 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 Marchex and Globavend Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Marchex and Globavend Holdings Limited, you can compare the effects of market volatilities on Marchex and Globavend 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 Marchex with a short position of Globavend Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marchex and Globavend Holdings.
Diversification Opportunities for Marchex and Globavend Holdings
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Marchex and Globavend is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Marchex and Globavend Holdings Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Globavend Holdings and Marchex 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 Marchex are associated (or correlated) with Globavend Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Globavend Holdings has no effect on the direction of Marchex i.e., Marchex and Globavend Holdings go up and down completely randomly.
Pair Corralation between Marchex and Globavend Holdings
Given the investment horizon of 90 days Marchex is expected to generate 0.44 times more return on investment than Globavend Holdings. However, Marchex is 2.26 times less risky than Globavend Holdings. It trades about 0.05 of its potential returns per unit of risk. Globavend Holdings Limited is currently generating about 0.01 per unit of risk. If you would invest 138.00 in Marchex on September 2, 2024 and sell it today you would earn a total of 44.00 from holding Marchex or generate 31.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Marchex vs. Globavend Holdings Limited
Performance |
| Timeline |
| Marchex |
| Globavend Holdings |
Marchex and Globavend Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marchex and Globavend Holdings
The main advantage of trading using opposite Marchex and Globavend Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marchex position performs unexpectedly, Globavend 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 Globavend Holdings will offset losses from the drop in Globavend Holdings' long position.| Marchex vs. Entravision Communications | Marchex vs. Direct Digital Holdings | Marchex vs. Cimpress NV | Marchex vs. Townsquare Media |
| Globavend Holdings vs. Treasury Wine Estates | Globavend Holdings vs. Monster Beverage Corp | Globavend Holdings vs. Marchex | Globavend Holdings vs. Townsquare Media |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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