Correlation Between Marine Products and Vision Marine
Can any of the company-specific risk be diversified away by investing in both Marine Products and Vision Marine 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 Vision Marine into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Marine Products and Vision Marine Technologies, you can compare the effects of market volatilities on Marine Products and Vision Marine 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 Vision Marine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marine Products and Vision Marine.
Diversification Opportunities for Marine Products and Vision Marine
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Marine and Vision is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Marine Products and Vision Marine Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vision Marine Techno 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 Vision Marine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vision Marine Techno has no effect on the direction of Marine Products i.e., Marine Products and Vision Marine go up and down completely randomly.
Pair Corralation between Marine Products and Vision Marine
Considering the 90-day investment horizon Marine Products is expected to generate 0.4 times more return on investment than Vision Marine. However, Marine Products is 2.49 times less risky than Vision Marine. It trades about 0.02 of its potential returns per unit of risk. Vision Marine Technologies is currently generating about -0.14 per unit of risk. If you would invest 939.00 in Marine Products on August 24, 2024 and sell it today you would earn a total of 59.00 from holding Marine Products or generate 6.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Marine Products vs. Vision Marine Technologies
Performance |
| Timeline |
| Marine Products |
| Vision Marine Techno |
Marine Products and Vision Marine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marine Products and Vision Marine
The main advantage of trading using opposite Marine Products and Vision Marine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marine Products position performs unexpectedly, Vision Marine 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 Vision Marine will offset losses from the drop in Vision Marine's long position.| Marine Products vs. Thor Industries | Marine Products vs. BRP Inc | Marine Products vs. Brunswick | Marine Products vs. EZGO Technologies |
| Vision Marine vs. EZGO Technologies | Vision Marine vs. LCI Industries | Vision Marine vs. Curtiss Motorcycles | Vision Marine vs. Marine Products |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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