Correlation Between Marcus and Haoxi Health
Can any of the company-specific risk be diversified away by investing in both Marcus and Haoxi Health 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 Haoxi Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Marcus and Haoxi Health Technology, you can compare the effects of market volatilities on Marcus and Haoxi Health 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 Haoxi Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marcus and Haoxi Health.
Diversification Opportunities for Marcus and Haoxi Health
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Marcus and Haoxi is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Marcus and Haoxi Health Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haoxi Health Technology 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 Haoxi Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Haoxi Health Technology has no effect on the direction of Marcus i.e., Marcus and Haoxi Health go up and down completely randomly.
Pair Corralation between Marcus and Haoxi Health
Considering the 90-day investment horizon Marcus is expected to generate 1.02 times less return on investment than Haoxi Health. But when comparing it to its historical volatility, Marcus is 2.01 times less risky than Haoxi Health. It trades about 0.46 of its potential returns per unit of risk. Haoxi Health Technology is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 19.00 in Haoxi Health Technology on August 24, 2024 and sell it today you would earn a total of 6.00 from holding Haoxi Health Technology or generate 31.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Marcus vs. Haoxi Health Technology
Performance |
| Timeline |
| Marcus |
| Haoxi Health Technology |
Marcus and Haoxi Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marcus and Haoxi Health
The main advantage of trading using opposite Marcus and Haoxi Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marcus position performs unexpectedly, Haoxi Health 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 Haoxi Health will offset losses from the drop in Haoxi Health's long position.| Marcus vs. News Corp A | Marcus vs. Liberty Media | Marcus vs. Warner Music Group | Marcus vs. Fox Corp Class |
| Haoxi Health vs. Ziff Davis | Haoxi Health vs. Cheer Holding | Haoxi Health vs. iClick Interactive Asia | Haoxi Health vs. Nexxen International |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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