Correlation Between Marcus and News Corp
Can any of the company-specific risk be diversified away by investing in both Marcus and News Corp 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 News Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Marcus and News Corp B, you can compare the effects of market volatilities on Marcus and News Corp 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 News Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marcus and News Corp.
Diversification Opportunities for Marcus and News Corp
Very poor diversification
The 3 months correlation between Marcus and News is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Marcus and News Corp B in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on News Corp B 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 News Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of News Corp B has no effect on the direction of Marcus i.e., Marcus and News Corp go up and down completely randomly.
Pair Corralation between Marcus and News Corp
Considering the 90-day investment horizon Marcus is expected to generate 2.17 times more return on investment than News Corp. However, Marcus is 2.17 times more volatile than News Corp B. It trades about 0.42 of its potential returns per unit of risk. News Corp B is currently generating about 0.45 per unit of risk. If you would invest 1,647 in Marcus on August 23, 2024 and sell it today you would earn a total of 535.00 from holding Marcus or generate 32.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Marcus vs. News Corp B
Performance |
| Timeline |
| Marcus |
| News Corp B |
Marcus and News Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marcus and News Corp
The main advantage of trading using opposite Marcus and News Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marcus position performs unexpectedly, News Corp 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 News Corp will offset losses from the drop in News Corp's long position.| Marcus vs. News Corp A | Marcus vs. Liberty Media | Marcus vs. Warner Music Group | Marcus vs. Fox Corp Class |
| News Corp vs. Fox Corp Class | News Corp vs. Liberty Media | News Corp vs. Marcus | News Corp vs. Madison Square Garden |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |