Correlation Between Marchex and Nexxen International
Can any of the company-specific risk be diversified away by investing in both Marchex and Nexxen International 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 Nexxen International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Marchex and Nexxen International, you can compare the effects of market volatilities on Marchex and Nexxen International 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 Nexxen International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marchex and Nexxen International.
Diversification Opportunities for Marchex and Nexxen International
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Marchex and Nexxen is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Marchex and Nexxen International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nexxen International 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 Nexxen International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nexxen International has no effect on the direction of Marchex i.e., Marchex and Nexxen International go up and down completely randomly.
Pair Corralation between Marchex and Nexxen International
Given the investment horizon of 90 days Marchex is expected to generate 3.32 times less return on investment than Nexxen International. But when comparing it to its historical volatility, Marchex is 1.45 times less risky than Nexxen International. It trades about 0.07 of its potential returns per unit of risk. Nexxen International is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 833.00 in Nexxen International on August 31, 2024 and sell it today you would earn a total of 151.00 from holding Nexxen International or generate 18.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Marchex vs. Nexxen International
Performance |
| Timeline |
| Marchex |
| Nexxen International |
Marchex and Nexxen International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marchex and Nexxen International
The main advantage of trading using opposite Marchex and Nexxen International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marchex position performs unexpectedly, Nexxen International 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 Nexxen International will offset losses from the drop in Nexxen International's long position.| Marchex vs. Entravision Communications | Marchex vs. Direct Digital Holdings | Marchex vs. Cimpress NV | Marchex vs. Townsquare Media |
| Nexxen International vs. Mirriad Advertising plc | Nexxen International vs. INEO Tech Corp | Nexxen International vs. Marchex | Nexxen International vs. Entravision Communications |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |