Correlation Between Marine Products and Bowhead Specialty
Can any of the company-specific risk be diversified away by investing in both Marine Products and Bowhead Specialty 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 Marine Products and Bowhead Specialty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Marine Products and Bowhead Specialty Holdings, you can compare the effects of market volatilities on Marine Products and Bowhead Specialty 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 Marine Products with a short position of Bowhead Specialty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marine Products and Bowhead Specialty.
Diversification Opportunities for Marine Products and Bowhead Specialty
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Marine and Bowhead is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Marine Products and Bowhead Specialty Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bowhead Specialty and Marine Products 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 Marine Products are associated (or correlated) with Bowhead Specialty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bowhead Specialty has no effect on the direction of Marine Products i.e., Marine Products and Bowhead Specialty go up and down completely randomly.
Pair Corralation between Marine Products and Bowhead Specialty
Considering the 90-day investment horizon Marine Products is expected to generate 1.24 times more return on investment than Bowhead Specialty. However, Marine Products is 1.24 times more volatile than Bowhead Specialty Holdings. It trades about 0.07 of its potential returns per unit of risk. Bowhead Specialty Holdings is currently generating about -0.13 per unit of risk. If you would invest 915.00 in Marine Products on November 4, 2024 and sell it today you would earn a total of 24.00 from holding Marine Products or generate 2.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Marine Products vs. Bowhead Specialty Holdings
Performance |
| Timeline |
| Marine Products |
| Bowhead Specialty |
Marine Products and Bowhead Specialty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marine Products and Bowhead Specialty
The main advantage of trading using opposite Marine Products and Bowhead Specialty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marine Products position performs unexpectedly, Bowhead Specialty 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 Bowhead Specialty will offset losses from the drop in Bowhead Specialty's long position.| Marine Products vs. Thor Industries | Marine Products vs. BRP Inc | Marine Products vs. Brunswick | Marine Products vs. EZGO Technologies |
| Bowhead Specialty vs. Playtech plc | Bowhead Specialty vs. Mattel Inc | Bowhead Specialty vs. Northstar Clean Technologies | Bowhead Specialty vs. CleanGo Innovations |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |