Correlation Between Mercurity Fintech and Marex Group
Can any of the company-specific risk be diversified away by investing in both Mercurity Fintech and Marex Group 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 Mercurity Fintech and Marex Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mercurity Fintech Holding and Marex Group plc, you can compare the effects of market volatilities on Mercurity Fintech and Marex Group 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 Mercurity Fintech with a short position of Marex Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mercurity Fintech and Marex Group.
Diversification Opportunities for Mercurity Fintech and Marex Group
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Mercurity and Marex is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Mercurity Fintech Holding and Marex Group plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marex Group plc and Mercurity Fintech 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 Mercurity Fintech Holding are associated (or correlated) with Marex Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marex Group plc has no effect on the direction of Mercurity Fintech i.e., Mercurity Fintech and Marex Group go up and down completely randomly.
Pair Corralation between Mercurity Fintech and Marex Group
Considering the 90-day investment horizon Mercurity Fintech Holding is expected to generate 3.84 times more return on investment than Marex Group. However, Mercurity Fintech is 3.84 times more volatile than Marex Group plc. It trades about 0.07 of its potential returns per unit of risk. Marex Group plc is currently generating about 0.14 per unit of risk. If you would invest 162.00 in Mercurity Fintech Holding on November 27, 2024 and sell it today you would earn a total of 537.00 from holding Mercurity Fintech Holding or generate 331.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 42.39% |
| Values | Daily Returns |
Mercurity Fintech Holding vs. Marex Group plc
Performance |
| Timeline |
| Mercurity Fintech Holding |
| Marex Group plc |
Mercurity Fintech and Marex Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mercurity Fintech and Marex Group
The main advantage of trading using opposite Mercurity Fintech and Marex Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mercurity Fintech position performs unexpectedly, Marex Group 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 Marex Group will offset losses from the drop in Marex Group's long position.| Mercurity Fintech vs. Scully Royalty | Mercurity Fintech vs. Donnelley Financial Solutions | Mercurity Fintech vs. Heritage Global | Mercurity Fintech vs. Oppenheimer Holdings |
| Marex Group vs. Cytek Biosciences | Marex Group vs. Repligen | Marex Group vs. Tandem Diabetes Care | Marex Group vs. Canaf Investments |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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