Correlation Between Marine Products and 857477BD4

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Can any of the company-specific risk be diversified away by investing in both Marine Products and 857477BD4 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 857477BD4 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Marine Products and US857477BD43, you can compare the effects of market volatilities on Marine Products and 857477BD4 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 857477BD4. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marine Products and 857477BD4.

Diversification Opportunities for Marine Products and 857477BD4

-0.57
  Correlation Coefficient

Excellent diversification

The 3 months correlation between Marine and 857477BD4 is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Marine Products and US857477BD43 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on US857477BD43 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 857477BD4. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of US857477BD43 has no effect on the direction of Marine Products i.e., Marine Products and 857477BD4 go up and down completely randomly.

Pair Corralation between Marine Products and 857477BD4

Considering the 90-day investment horizon Marine Products is expected to generate 4.29 times more return on investment than 857477BD4. However, Marine Products is 4.29 times more volatile than US857477BD43. It trades about 0.01 of its potential returns per unit of risk. US857477BD43 is currently generating about 0.0 per unit of risk. If you would invest  987.00  in Marine Products on September 5, 2024 and sell it today you would lose (7.00) from holding Marine Products or give up 0.71% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy78.38%
ValuesDaily Returns

Marine Products  vs.  US857477BD43

 Performance 
       Timeline  
Marine Products 

Risk-Adjusted Performance

5 of 100

 
Weak
 
Strong
Modest
Compared to the overall equity markets, risk-adjusted returns on investments in Marine Products are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating basic indicators, Marine Products may actually be approaching a critical reversion point that can send shares even higher in January 2025.
US857477BD43 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days US857477BD43 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, 857477BD4 is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Marine Products and 857477BD4 Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Marine Products and 857477BD4

The main advantage of trading using opposite Marine Products and 857477BD4 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marine Products position performs unexpectedly, 857477BD4 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 857477BD4 will offset losses from the drop in 857477BD4's long position.
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The idea behind Marine Products and US857477BD43 pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.

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