Correlation Between Marine Products and Airspan Networks
Can any of the company-specific risk be diversified away by investing in both Marine Products and Airspan Networks 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 Airspan Networks into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Marine Products and Airspan Networks Holdings, you can compare the effects of market volatilities on Marine Products and Airspan Networks 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 Airspan Networks. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marine Products and Airspan Networks.
Diversification Opportunities for Marine Products and Airspan Networks
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Marine and Airspan is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Marine Products and Airspan Networks Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Airspan Networks Holdings 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 Airspan Networks. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Airspan Networks Holdings has no effect on the direction of Marine Products i.e., Marine Products and Airspan Networks go up and down completely randomly.
Pair Corralation between Marine Products and Airspan Networks
Considering the 90-day investment horizon Marine Products is expected to generate 2241.05 times less return on investment than Airspan Networks. But when comparing it to its historical volatility, Marine Products is 83.1 times less risky than Airspan Networks. It trades about 0.01 of its potential returns per unit of risk. Airspan Networks Holdings is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 0.04 in Airspan Networks Holdings on September 14, 2024 and sell it today you would earn a total of 0.21 from holding Airspan Networks Holdings or generate 525.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 6.68% |
| Values | Daily Returns |
Marine Products vs. Airspan Networks Holdings
Performance |
| Timeline |
| Marine Products |
| Airspan Networks Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Marine Products and Airspan Networks Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marine Products and Airspan Networks
The main advantage of trading using opposite Marine Products and Airspan Networks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marine Products position performs unexpectedly, Airspan Networks 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 Airspan Networks will offset losses from the drop in Airspan Networks' long position.| Marine Products vs. Thor Industries | Marine Products vs. BRP Inc | Marine Products vs. Brunswick | Marine Products vs. EZGO Technologies |
| Airspan Networks vs. Viemed Healthcare | Airspan Networks vs. Marine Products | Airspan Networks vs. PACCAR Inc | Airspan Networks vs. Magna International |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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