Correlation Between Marine Products and Maplebear Common
Can any of the company-specific risk be diversified away by investing in both Marine Products and Maplebear Common 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 Maplebear Common into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Marine Products and Maplebear Common Stock, you can compare the effects of market volatilities on Marine Products and Maplebear Common 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 Maplebear Common. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marine Products and Maplebear Common.
Diversification Opportunities for Marine Products and Maplebear Common
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Marine and Maplebear is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Marine Products and Maplebear Common Stock in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maplebear Common Stock 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 Maplebear Common. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maplebear Common Stock has no effect on the direction of Marine Products i.e., Marine Products and Maplebear Common go up and down completely randomly.
Pair Corralation between Marine Products and Maplebear Common
Considering the 90-day investment horizon Marine Products is expected to generate 0.54 times more return on investment than Maplebear Common. However, Marine Products is 1.84 times less risky than Maplebear Common. It trades about 0.14 of its potential returns per unit of risk. Maplebear Common Stock is currently generating about -0.02 per unit of risk. If you would invest 937.00 in Marine Products on August 29, 2024 and sell it today you would earn a total of 49.00 from holding Marine Products or generate 5.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Marine Products vs. Maplebear Common Stock
Performance |
| Timeline |
| Marine Products |
| Maplebear Common Stock |
Marine Products and Maplebear Common Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marine Products and Maplebear Common
The main advantage of trading using opposite Marine Products and Maplebear Common positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marine Products position performs unexpectedly, Maplebear Common 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 Maplebear Common will offset losses from the drop in Maplebear Common's long position.| Marine Products vs. Thor Industries | Marine Products vs. BRP Inc | Marine Products vs. Brunswick | Marine Products vs. EZGO Technologies |
| Maplebear Common vs. Exchange Bankshares | Maplebear Common vs. Malaga Financial | Maplebear Common vs. Artisan Partners Asset | Maplebear Common vs. Glacier Bancorp |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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