Correlation Between Martin Marietta and Wienerberger
Can any of the company-specific risk be diversified away by investing in both Martin Marietta and Wienerberger 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 Martin Marietta and Wienerberger into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Martin Marietta Materials and Wienerberger AG, you can compare the effects of market volatilities on Martin Marietta and Wienerberger 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 Martin Marietta with a short position of Wienerberger. Check out your portfolio center. Please also check ongoing floating volatility patterns of Martin Marietta and Wienerberger.
Diversification Opportunities for Martin Marietta and Wienerberger
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Martin and Wienerberger is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Martin Marietta Materials and Wienerberger AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wienerberger AG and Martin Marietta 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 Martin Marietta Materials are associated (or correlated) with Wienerberger. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wienerberger AG has no effect on the direction of Martin Marietta i.e., Martin Marietta and Wienerberger go up and down completely randomly.
Pair Corralation between Martin Marietta and Wienerberger
Assuming the 90 days horizon Martin Marietta Materials is expected to generate 0.97 times more return on investment than Wienerberger. However, Martin Marietta Materials is 1.03 times less risky than Wienerberger. It trades about 0.05 of its potential returns per unit of risk. Wienerberger AG is currently generating about 0.02 per unit of risk. If you would invest 33,906 in Martin Marietta Materials on November 28, 2024 and sell it today you would earn a total of 12,884 from holding Martin Marietta Materials or generate 38.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Martin Marietta Materials vs. Wienerberger AG
Performance |
| Timeline |
| Martin Marietta Materials |
| Wienerberger AG |
Martin Marietta and Wienerberger Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Martin Marietta and Wienerberger
The main advantage of trading using opposite Martin Marietta and Wienerberger positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Martin Marietta position performs unexpectedly, Wienerberger 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 Wienerberger will offset losses from the drop in Wienerberger's long position.| Martin Marietta vs. Rocket Internet SE | Martin Marietta vs. MOVIE GAMES SA | Martin Marietta vs. MAVEN WIRELESS SWEDEN | Martin Marietta vs. Entravision Communications |
| Wienerberger vs. Choice Hotels International | Wienerberger vs. Zoom Video Communications | Wienerberger vs. MOVIE GAMES SA | Wienerberger vs. Meli Hotels 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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