Correlation Between Marine Products and Gaxosai
Can any of the company-specific risk be diversified away by investing in both Marine Products and Gaxosai 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 Gaxosai into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Marine Products and Gaxosai, you can compare the effects of market volatilities on Marine Products and Gaxosai 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 Gaxosai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marine Products and Gaxosai.
Diversification Opportunities for Marine Products and Gaxosai
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Marine and Gaxosai is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Marine Products and Gaxosai in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gaxosai 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 Gaxosai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gaxosai has no effect on the direction of Marine Products i.e., Marine Products and Gaxosai go up and down completely randomly.
Pair Corralation between Marine Products and Gaxosai
Considering the 90-day investment horizon Marine Products is expected to under-perform the Gaxosai. But the stock apears to be less risky and, when comparing its historical volatility, Marine Products is 5.54 times less risky than Gaxosai. The stock trades about 0.0 of its potential returns per unit of risk. The Gaxosai is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 480.00 in Gaxosai on September 19, 2024 and sell it today you would lose (148.00) from holding Gaxosai or give up 30.83% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Marine Products vs. Gaxosai
Performance |
| Timeline |
| Marine Products |
| Gaxosai |
Marine Products and Gaxosai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marine Products and Gaxosai
The main advantage of trading using opposite Marine Products and Gaxosai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marine Products position performs unexpectedly, Gaxosai 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 Gaxosai will offset losses from the drop in Gaxosai's long position.| Marine Products vs. Clarus Corp | Marine Products vs. OneSpaWorld Holdings | Marine Products vs. Leatt Corp | Marine Products vs. Six Flags Entertainment |
| Gaxosai vs. Hudson Pacific Properties | Gaxosai vs. Brunswick | Gaxosai vs. Playtika Holding Corp | Gaxosai vs. Marine 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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