Correlation Between Marcus and Pop Culture
Can any of the company-specific risk be diversified away by investing in both Marcus and Pop Culture 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 Marcus and Pop Culture into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Marcus and Pop Culture Group, you can compare the effects of market volatilities on Marcus and Pop Culture 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 Marcus with a short position of Pop Culture. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marcus and Pop Culture.
Diversification Opportunities for Marcus and Pop Culture
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Marcus and Pop is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Marcus and Pop Culture Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pop Culture Group and Marcus 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 Marcus are associated (or correlated) with Pop Culture. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pop Culture Group has no effect on the direction of Marcus i.e., Marcus and Pop Culture go up and down completely randomly.
Pair Corralation between Marcus and Pop Culture
Considering the 90-day investment horizon Marcus is expected to generate 0.79 times more return on investment than Pop Culture. However, Marcus is 1.27 times less risky than Pop Culture. It trades about 0.37 of its potential returns per unit of risk. Pop Culture Group is currently generating about -0.08 per unit of risk. If you would invest 1,881 in Marcus on September 1, 2024 and sell it today you would earn a total of 383.00 from holding Marcus or generate 20.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Marcus vs. Pop Culture Group
Performance |
| Timeline |
| Marcus |
| Pop Culture Group |
Marcus and Pop Culture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marcus and Pop Culture
The main advantage of trading using opposite Marcus and Pop Culture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marcus position performs unexpectedly, Pop Culture 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 Pop Culture will offset losses from the drop in Pop Culture's long position.| Marcus vs. ADTRAN Inc | Marcus vs. Belden Inc | Marcus vs. ADC Therapeutics SA | Marcus vs. Comtech Telecommunications Corp |
| Pop Culture vs. Hollywall Entertainment | Pop Culture vs. Kuke Music Holding | Pop Culture vs. Reading International | Pop Culture vs. Reservoir 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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