Correlation Between Marine Products and Fund
Can any of the company-specific risk be diversified away by investing in both Marine Products and Fund 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 Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Marine Products and Fund Inc, you can compare the effects of market volatilities on Marine Products and Fund 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 Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marine Products and Fund.
Diversification Opportunities for Marine Products and Fund
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Marine and Fund is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Marine Products and Fund Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fund Inc 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 Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fund Inc has no effect on the direction of Marine Products i.e., Marine Products and Fund go up and down completely randomly.
Pair Corralation between Marine Products and Fund
Considering the 90-day investment horizon Marine Products is expected to generate 8.18 times less return on investment than Fund. But when comparing it to its historical volatility, Marine Products is 2.13 times less risky than Fund. It trades about 0.01 of its potential returns per unit of risk. Fund Inc is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 110.00 in Fund Inc on September 5, 2024 and sell it today you would earn a total of 114.00 from holding Fund Inc or generate 103.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Marine Products vs. Fund Inc
Performance |
| Timeline |
| Marine Products |
| Fund Inc |
Marine Products and Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marine Products and Fund
The main advantage of trading using opposite Marine Products and Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marine Products position performs unexpectedly, Fund 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 Fund will offset losses from the drop in Fund's long position.| Marine Products vs. Thor Industries | Marine Products vs. EZGO Technologies | Marine Products vs. Polaris Industries | Marine Products vs. LCI Industries |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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