Correlation Between Marcus Millichap and Newmark
Can any of the company-specific risk be diversified away by investing in both Marcus Millichap and Newmark 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 Millichap and Newmark into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Marcus Millichap and Newmark Group, you can compare the effects of market volatilities on Marcus Millichap and Newmark 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 Millichap with a short position of Newmark. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marcus Millichap and Newmark.
Diversification Opportunities for Marcus Millichap and Newmark
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Marcus and Newmark is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Marcus Millichap and Newmark Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Newmark Group and Marcus Millichap 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 Millichap are associated (or correlated) with Newmark. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Newmark Group has no effect on the direction of Marcus Millichap i.e., Marcus Millichap and Newmark go up and down completely randomly.
Pair Corralation between Marcus Millichap and Newmark
Considering the 90-day investment horizon Marcus Millichap is expected to generate 1.01 times more return on investment than Newmark. However, Marcus Millichap is 1.01 times more volatile than Newmark Group. It trades about 0.28 of its potential returns per unit of risk. Newmark Group is currently generating about 0.09 per unit of risk. If you would invest 3,819 in Marcus Millichap on August 28, 2024 and sell it today you would earn a total of 403.00 from holding Marcus Millichap or generate 10.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Marcus Millichap vs. Newmark Group
Performance |
| Timeline |
| Marcus Millichap |
| Newmark Group |
Marcus Millichap and Newmark Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marcus Millichap and Newmark
The main advantage of trading using opposite Marcus Millichap and Newmark positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marcus Millichap position performs unexpectedly, Newmark 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 Newmark will offset losses from the drop in Newmark's long position.| Marcus Millichap vs. Investcorp Credit Management | Marcus Millichap vs. Medalist Diversified Reit | Marcus Millichap vs. Aquagold International | Marcus Millichap vs. Morningstar Unconstrained Allocation |
| Newmark vs. Jones Lang LaSalle | Newmark vs. CBRE Group Class | Newmark vs. Colliers International Group | Newmark vs. Marcus Millichap |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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