Correlation Between Marine Products and International Media
Can any of the company-specific risk be diversified away by investing in both Marine Products and International Media 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 International Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Marine Products and International Media Acquisition, you can compare the effects of market volatilities on Marine Products and International Media 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 International Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marine Products and International Media.
Diversification Opportunities for Marine Products and International Media
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Marine and International is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Marine Products and International Media Acquisitio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Media 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 International Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International Media has no effect on the direction of Marine Products i.e., Marine Products and International Media go up and down completely randomly.
Pair Corralation between Marine Products and International Media
Considering the 90-day investment horizon Marine Products is expected to under-perform the International Media. In addition to that, Marine Products is 1.68 times more volatile than International Media Acquisition. It trades about -0.03 of its total potential returns per unit of risk. International Media Acquisition is currently generating about 0.03 per unit of volatility. If you would invest 1,105 in International Media Acquisition on September 12, 2024 and sell it today you would earn a total of 95.00 from holding International Media Acquisition or generate 8.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 74.62% |
| Values | Daily Returns |
Marine Products vs. International Media Acquisitio
Performance |
| Timeline |
| Marine Products |
| International Media |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Marine Products and International Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marine Products and International Media
The main advantage of trading using opposite Marine Products and International Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marine Products position performs unexpectedly, International Media 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 International Media will offset losses from the drop in International Media's long position.| Marine Products vs. Thor Industries | Marine Products vs. BRP Inc | Marine Products vs. Brunswick | Marine Products vs. EZGO Technologies |
| International Media vs. Marine Products | International Media vs. Tyson Foods | International Media vs. Brunswick | International Media vs. JD Sports Fashion |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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