Correlation Between Marstons PLC and Aerofoam Metals
Can any of the company-specific risk be diversified away by investing in both Marstons PLC and Aerofoam Metals 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 Marstons PLC and Aerofoam Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Marstons PLC and Aerofoam Metals, you can compare the effects of market volatilities on Marstons PLC and Aerofoam Metals 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 Marstons PLC with a short position of Aerofoam Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marstons PLC and Aerofoam Metals.
Diversification Opportunities for Marstons PLC and Aerofoam Metals
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Marstons and Aerofoam is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Marstons PLC and Aerofoam Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aerofoam Metals and Marstons 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 Marstons PLC are associated (or correlated) with Aerofoam Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aerofoam Metals has no effect on the direction of Marstons PLC i.e., Marstons PLC and Aerofoam Metals go up and down completely randomly.
Pair Corralation between Marstons PLC and Aerofoam Metals
If you would invest 428.00 in Marstons PLC on November 28, 2024 and sell it today you would earn a total of 67.00 from holding Marstons PLC or generate 15.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Marstons PLC vs. Aerofoam Metals
Performance |
| Timeline |
| Marstons PLC |
| Aerofoam Metals |
Marstons PLC and Aerofoam Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marstons PLC and Aerofoam Metals
The main advantage of trading using opposite Marstons PLC and Aerofoam Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marstons PLC position performs unexpectedly, Aerofoam Metals 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 Aerofoam Metals will offset losses from the drop in Aerofoam Metals' long position.| Marstons PLC vs. Marstons PLC | Marstons PLC vs. Bagger Daves Burger | Marstons PLC vs. Alsea SAB de | Marstons PLC vs. Spot Coffee |
| Aerofoam Metals vs. Spyre Therapeutics | Aerofoam Metals vs. Teleflex Incorporated | Aerofoam Metals vs. Compass Diversified Holdings | Aerofoam Metals vs. Fidus Investment Corp |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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