Correlation Between Martin Marietta and JIAHUA STORES
Can any of the company-specific risk be diversified away by investing in both Martin Marietta and JIAHUA STORES 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 JIAHUA STORES 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 JIAHUA STORES, you can compare the effects of market volatilities on Martin Marietta and JIAHUA STORES 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 JIAHUA STORES. Check out your portfolio center. Please also check ongoing floating volatility patterns of Martin Marietta and JIAHUA STORES.
Diversification Opportunities for Martin Marietta and JIAHUA STORES
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Martin and JIAHUA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Martin Marietta Materials and JIAHUA STORES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JIAHUA STORES 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 JIAHUA STORES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JIAHUA STORES has no effect on the direction of Martin Marietta i.e., Martin Marietta and JIAHUA STORES go up and down completely randomly.
Pair Corralation between Martin Marietta and JIAHUA STORES
If you would invest 33,630 in Martin Marietta Materials on September 3, 2024 and sell it today you would earn a total of 22,570 from holding Martin Marietta Materials or generate 67.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Martin Marietta Materials vs. JIAHUA STORES
Performance |
| Timeline |
| Martin Marietta Materials |
| JIAHUA STORES |
Martin Marietta and JIAHUA STORES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Martin Marietta and JIAHUA STORES
The main advantage of trading using opposite Martin Marietta and JIAHUA STORES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Martin Marietta position performs unexpectedly, JIAHUA STORES 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 JIAHUA STORES will offset losses from the drop in JIAHUA STORES's long position.| Martin Marietta vs. SBI Insurance Group | Martin Marietta vs. Ping An Insurance | Martin Marietta vs. ScanSource | Martin Marietta vs. Reinsurance Group of |
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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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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