Correlation Between Marine Products and Mapletree Logistics
Can any of the company-specific risk be diversified away by investing in both Marine Products and Mapletree Logistics 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 Mapletree Logistics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Marine Products and Mapletree Logistics Trust, you can compare the effects of market volatilities on Marine Products and Mapletree Logistics 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 Mapletree Logistics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marine Products and Mapletree Logistics.
Diversification Opportunities for Marine Products and Mapletree Logistics
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Marine and Mapletree is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Marine Products and Mapletree Logistics Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mapletree Logistics Trust 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 Mapletree Logistics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mapletree Logistics Trust has no effect on the direction of Marine Products i.e., Marine Products and Mapletree Logistics go up and down completely randomly.
Pair Corralation between Marine Products and Mapletree Logistics
Considering the 90-day investment horizon Marine Products is expected to generate 1.69 times less return on investment than Mapletree Logistics. But when comparing it to its historical volatility, Marine Products is 1.43 times less risky than Mapletree Logistics. It trades about 0.02 of its potential returns per unit of risk. Mapletree Logistics Trust is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 100.00 in Mapletree Logistics Trust on August 26, 2024 and sell it today you would earn a total of 1.00 from holding Mapletree Logistics Trust or generate 1.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 70.42% |
| Values | Daily Returns |
Marine Products vs. Mapletree Logistics Trust
Performance |
| Timeline |
| Marine Products |
| Mapletree Logistics Trust |
Marine Products and Mapletree Logistics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marine Products and Mapletree Logistics
The main advantage of trading using opposite Marine Products and Mapletree Logistics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marine Products position performs unexpectedly, Mapletree Logistics 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 Mapletree Logistics will offset losses from the drop in Mapletree Logistics' long position.| Marine Products vs. MCBC Holdings | Marine Products vs. Winnebago Industries | Marine Products vs. LCI Industries | Marine Products vs. Thor Industries |
| Mapletree Logistics vs. Boston Omaha Corp | Mapletree Logistics vs. Marine Products | Mapletree Logistics vs. WiMi Hologram Cloud | Mapletree Logistics vs. Brunswick |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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