Correlation Between Marin Software and CurrentC Power
Can any of the company-specific risk be diversified away by investing in both Marin Software and CurrentC Power 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 Marin Software and CurrentC Power into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Marin Software and CurrentC Power, you can compare the effects of market volatilities on Marin Software and CurrentC Power 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 Marin Software with a short position of CurrentC Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marin Software and CurrentC Power.
Diversification Opportunities for Marin Software and CurrentC Power
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Marin and CurrentC is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Marin Software and CurrentC Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CurrentC Power and Marin Software 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 Marin Software are associated (or correlated) with CurrentC Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CurrentC Power has no effect on the direction of Marin Software i.e., Marin Software and CurrentC Power go up and down completely randomly.
Pair Corralation between Marin Software and CurrentC Power
Given the investment horizon of 90 days Marin Software is expected to under-perform the CurrentC Power. But the stock apears to be less risky and, when comparing its historical volatility, Marin Software is 4.73 times less risky than CurrentC Power. The stock trades about 0.0 of its potential returns per unit of risk. The CurrentC Power is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 15.00 in CurrentC Power on September 2, 2024 and sell it today you would lose (2.00) from holding CurrentC Power or give up 13.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Marin Software vs. CurrentC Power
Performance |
| Timeline |
| Marin Software |
| CurrentC Power |
Marin Software and CurrentC Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marin Software and CurrentC Power
The main advantage of trading using opposite Marin Software and CurrentC Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marin Software position performs unexpectedly, CurrentC Power 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 CurrentC Power will offset losses from the drop in CurrentC Power's long position.The idea behind Marin Software and CurrentC Power 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.| CurrentC Power vs. Legacy Education | CurrentC Power vs. Apple Inc | CurrentC Power vs. NVIDIA | CurrentC Power vs. Microsoft |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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