Correlation Between Marine Products and 360 Finance
Can any of the company-specific risk be diversified away by investing in both Marine Products and 360 Finance 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 360 Finance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Marine Products and 360 Finance, you can compare the effects of market volatilities on Marine Products and 360 Finance 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 360 Finance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marine Products and 360 Finance.
Diversification Opportunities for Marine Products and 360 Finance
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Marine and 360 is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Marine Products and 360 Finance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 360 Finance 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 360 Finance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 360 Finance has no effect on the direction of Marine Products i.e., Marine Products and 360 Finance go up and down completely randomly.
Pair Corralation between Marine Products and 360 Finance
Considering the 90-day investment horizon Marine Products is expected to under-perform the 360 Finance. But the stock apears to be less risky and, when comparing its historical volatility, Marine Products is 1.12 times less risky than 360 Finance. The stock trades about -0.03 of its potential returns per unit of risk. The 360 Finance is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,451 in 360 Finance on August 31, 2024 and sell it today you would earn a total of 2,360 from holding 360 Finance or generate 162.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Marine Products vs. 360 Finance
Performance |
| Timeline |
| Marine Products |
| 360 Finance |
Marine Products and 360 Finance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marine Products and 360 Finance
The main advantage of trading using opposite Marine Products and 360 Finance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marine Products position performs unexpectedly, 360 Finance 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 360 Finance will offset losses from the drop in 360 Finance's long position.| Marine Products vs. Vision Marine Technologies | Marine Products vs. EZGO Technologies | Marine Products vs. LCI Industries | Marine Products vs. Curtiss Motorcycles |
| 360 Finance vs. Joint Stock | 360 Finance vs. ACG Metals Limited | 360 Finance vs. Eldorado Gold Corp | 360 Finance vs. Keurig Dr Pepper |
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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