Correlation Between Marine Products and Femasys
Can any of the company-specific risk be diversified away by investing in both Marine Products and Femasys 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 Femasys into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Marine Products and Femasys, you can compare the effects of market volatilities on Marine Products and Femasys 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 Femasys. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marine Products and Femasys.
Diversification Opportunities for Marine Products and Femasys
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Marine and Femasys is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Marine Products and Femasys in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Femasys 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 Femasys. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Femasys has no effect on the direction of Marine Products i.e., Marine Products and Femasys go up and down completely randomly.
Pair Corralation between Marine Products and Femasys
Considering the 90-day investment horizon Marine Products is expected to under-perform the Femasys. But the stock apears to be less risky and, when comparing its historical volatility, Marine Products is 8.04 times less risky than Femasys. The stock trades about -0.03 of its potential returns per unit of risk. The Femasys is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 70.00 in Femasys on August 31, 2024 and sell it today you would earn a total of 42.00 from holding Femasys or generate 60.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Marine Products vs. Femasys
Performance |
| Timeline |
| Marine Products |
| Femasys |
Marine Products and Femasys Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marine Products and Femasys
The main advantage of trading using opposite Marine Products and Femasys positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marine Products position performs unexpectedly, Femasys 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 Femasys will offset losses from the drop in Femasys' long position.| Marine Products vs. Vision Marine Technologies | Marine Products vs. EZGO Technologies | Marine Products vs. LCI Industries | Marine Products vs. Curtiss Motorcycles |
| Femasys vs. Precision Optics, | Femasys vs. Repro Med Systems | Femasys vs. InfuSystems Holdings | Femasys vs. Utah Medical Products |
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 Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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