Correlation Between Marlowe Plc and Publicis Groupe
Can any of the company-specific risk be diversified away by investing in both Marlowe Plc and Publicis Groupe 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 Marlowe Plc and Publicis Groupe into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Marlowe plc and Publicis Groupe SA, you can compare the effects of market volatilities on Marlowe Plc and Publicis Groupe 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 Marlowe Plc with a short position of Publicis Groupe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marlowe Plc and Publicis Groupe.
Diversification Opportunities for Marlowe Plc and Publicis Groupe
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Marlowe and Publicis is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Marlowe plc and Publicis Groupe SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Publicis Groupe SA and Marlowe Plc 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 Marlowe plc are associated (or correlated) with Publicis Groupe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Publicis Groupe SA has no effect on the direction of Marlowe Plc i.e., Marlowe Plc and Publicis Groupe go up and down completely randomly.
Pair Corralation between Marlowe Plc and Publicis Groupe
Assuming the 90 days horizon Marlowe plc is expected to generate 4.74 times more return on investment than Publicis Groupe. However, Marlowe Plc is 4.74 times more volatile than Publicis Groupe SA. It trades about 0.13 of its potential returns per unit of risk. Publicis Groupe SA is currently generating about -0.15 per unit of risk. If you would invest 321.00 in Marlowe plc on August 26, 2024 and sell it today you would earn a total of 97.00 from holding Marlowe plc or generate 30.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Marlowe plc vs. Publicis Groupe SA
Performance |
| Timeline |
| Marlowe plc |
| Publicis Groupe SA |
Marlowe Plc and Publicis Groupe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marlowe Plc and Publicis Groupe
The main advantage of trading using opposite Marlowe Plc and Publicis Groupe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marlowe Plc position performs unexpectedly, Publicis Groupe 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 Publicis Groupe will offset losses from the drop in Publicis Groupe's long position.| Marlowe Plc vs. Securitas AB | Marlowe Plc vs. Secom Co Ltd | Marlowe Plc vs. Allegion PLC | Marlowe Plc vs. MSA Safety |
| Publicis Groupe vs. Marchex | Publicis Groupe vs. Snipp Interactive | Publicis Groupe vs. Emerald Expositions Events |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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