Correlation Between Maris Tech and EMagin
Can any of the company-specific risk be diversified away by investing in both Maris Tech and EMagin 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 Maris Tech and EMagin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Maris Tech and EMagin, you can compare the effects of market volatilities on Maris Tech and EMagin 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 Maris Tech with a short position of EMagin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maris Tech and EMagin.
Diversification Opportunities for Maris Tech and EMagin
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Maris and EMagin is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Maris Tech and EMagin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EMagin and Maris Tech 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 Maris Tech are associated (or correlated) with EMagin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EMagin has no effect on the direction of Maris Tech i.e., Maris Tech and EMagin go up and down completely randomly.
Pair Corralation between Maris Tech and EMagin
Given the investment horizon of 90 days Maris Tech is expected to generate 3.18 times less return on investment than EMagin. But when comparing it to its historical volatility, Maris Tech is 1.27 times less risky than EMagin. It trades about 0.05 of its potential returns per unit of risk. EMagin is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 86.00 in EMagin on August 24, 2024 and sell it today you would earn a total of 114.00 from holding EMagin or generate 132.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 32.12% |
| Values | Daily Returns |
Maris Tech vs. EMagin
Performance |
| Timeline |
| Maris Tech |
| EMagin |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Maris Tech and EMagin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maris Tech and EMagin
The main advantage of trading using opposite Maris Tech and EMagin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maris Tech position performs unexpectedly, EMagin 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 EMagin will offset losses from the drop in EMagin's long position.| Maris Tech vs. Methode Electronics | Maris Tech vs. LightPath Technologies | Maris Tech vs. Interlink Electronics | Maris Tech vs. SigmaTron International |
| EMagin vs. KULR Technology Group | EMagin vs. Ouster Inc | EMagin vs. LightPath Technologies | EMagin vs. Daktronics |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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