Correlation Between Marine Products and Sonder Holdings
Can any of the company-specific risk be diversified away by investing in both Marine Products and Sonder Holdings 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 Sonder Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Marine Products and Sonder Holdings, you can compare the effects of market volatilities on Marine Products and Sonder Holdings 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 Sonder Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marine Products and Sonder Holdings.
Diversification Opportunities for Marine Products and Sonder Holdings
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Marine and Sonder is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Marine Products and Sonder Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sonder 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 Sonder Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sonder Holdings has no effect on the direction of Marine Products i.e., Marine Products and Sonder Holdings go up and down completely randomly.
Pair Corralation between Marine Products and Sonder Holdings
Considering the 90-day investment horizon Marine Products is expected to generate 2.21 times less return on investment than Sonder Holdings. But when comparing it to its historical volatility, Marine Products is 4.15 times less risky than Sonder Holdings. It trades about 0.02 of its potential returns per unit of risk. Sonder Holdings is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 2,740 in Sonder Holdings on September 3, 2024 and sell it today you would lose (2,360) from holding Sonder Holdings or give up 86.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Marine Products vs. Sonder Holdings
Performance |
| Timeline |
| Marine Products |
| Sonder Holdings |
Marine Products and Sonder Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marine Products and Sonder Holdings
The main advantage of trading using opposite Marine Products and Sonder Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marine Products position performs unexpectedly, Sonder Holdings 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 Sonder Holdings will offset losses from the drop in Sonder Holdings' long position.| Marine Products vs. BRP Inc | Marine Products vs. Brunswick | Marine Products vs. EZGO Technologies | Marine Products vs. SCOR PK |
| Sonder Holdings vs. Wyndham Hotels Resorts | Sonder Holdings vs. InterContinental Hotels Group | Sonder Holdings vs. Hyatt Hotels | Sonder Holdings vs. Hilton Worldwide Holdings |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |