Correlation Between Martin Marietta and Hapag Lloyd
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By analyzing existing cross correlation between Martin Marietta Materials and Hapag Lloyd AG, you can compare the effects of market volatilities on Martin Marietta and Hapag Lloyd 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 Hapag Lloyd. Check out your portfolio center. Please also check ongoing floating volatility patterns of Martin Marietta and Hapag Lloyd.
Diversification Opportunities for Martin Marietta and Hapag Lloyd
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Martin and Hapag is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Martin Marietta Materials and Hapag Lloyd AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hapag Lloyd 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 Hapag Lloyd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hapag Lloyd AG has no effect on the direction of Martin Marietta i.e., Martin Marietta and Hapag Lloyd go up and down completely randomly.
Pair Corralation between Martin Marietta and Hapag Lloyd
Assuming the 90 days trading horizon Martin Marietta Materials is expected to generate 0.41 times more return on investment than Hapag Lloyd. However, Martin Marietta Materials is 2.46 times less risky than Hapag Lloyd. It trades about 0.16 of its potential returns per unit of risk. Hapag Lloyd AG is currently generating about 0.06 per unit of risk. If you would invest 46,405 in Martin Marietta Materials on September 12, 2024 and sell it today you would earn a total of 7,015 from holding Martin Marietta Materials or generate 15.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Martin Marietta Materials vs. Hapag Lloyd AG
Performance |
| Timeline |
| Martin Marietta Materials |
| Hapag Lloyd AG |
Martin Marietta and Hapag Lloyd Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Martin Marietta and Hapag Lloyd
The main advantage of trading using opposite Martin Marietta and Hapag Lloyd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Martin Marietta position performs unexpectedly, Hapag Lloyd 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 Hapag Lloyd will offset losses from the drop in Hapag Lloyd's long position.| Martin Marietta vs. Apple Inc | Martin Marietta vs. Apple Inc | Martin Marietta vs. Apple Inc | Martin Marietta vs. Apple Inc |
| Hapag Lloyd vs. VULCAN MATERIALS | Hapag Lloyd vs. Mitsubishi Materials | Hapag Lloyd vs. Aluminum of | Hapag Lloyd vs. Martin Marietta Materials |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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