Correlation Between Marchex and Energy
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By analyzing existing cross correlation between Marchex and Energy Transfer 7125, you can compare the effects of market volatilities on Marchex and Energy 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 Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marchex and Energy.
Diversification Opportunities for Marchex and Energy
Good diversification
The 3 months correlation between Marchex and Energy is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Marchex and Energy Transfer 7125 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Energy Transfer 7125 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 Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Energy Transfer 7125 has no effect on the direction of Marchex i.e., Marchex and Energy go up and down completely randomly.
Pair Corralation between Marchex and Energy
Given the investment horizon of 90 days Marchex is expected to generate 1.35 times more return on investment than Energy. However, Marchex is 1.35 times more volatile than Energy Transfer 7125. It trades about 0.09 of its potential returns per unit of risk. Energy Transfer 7125 is currently generating about 0.02 per unit of risk. If you would invest 181.00 in Marchex on September 12, 2024 and sell it today you would earn a total of 35.00 from holding Marchex or generate 19.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.44% |
| Values | Daily Returns |
Marchex vs. Energy Transfer 7125
Performance |
| Timeline |
| Marchex |
| Energy Transfer 7125 |
Marchex and Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marchex and Energy
The main advantage of trading using opposite Marchex and Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marchex position performs unexpectedly, Energy 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 Energy will offset losses from the drop in Energy's long position.| Marchex vs. Entravision Communications | Marchex vs. Direct Digital Holdings | Marchex vs. Cimpress NV | Marchex vs. Townsquare Media |
| Energy vs. Diamond Estates Wines | Energy vs. Boston Beer | Energy vs. Ambev SA ADR | Energy vs. High Performance Beverages |
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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