Correlation Between Oriental Culture and MarineMax
Can any of the company-specific risk be diversified away by investing in both Oriental Culture and MarineMax 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 Oriental Culture and MarineMax into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oriental Culture Holding and MarineMax, you can compare the effects of market volatilities on Oriental Culture and MarineMax 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 Oriental Culture with a short position of MarineMax. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oriental Culture and MarineMax.
Diversification Opportunities for Oriental Culture and MarineMax
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Oriental and MarineMax is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Oriental Culture Holding and MarineMax in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MarineMax and Oriental Culture 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 Oriental Culture Holding are associated (or correlated) with MarineMax. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MarineMax has no effect on the direction of Oriental Culture i.e., Oriental Culture and MarineMax go up and down completely randomly.
Pair Corralation between Oriental Culture and MarineMax
Considering the 90-day investment horizon Oriental Culture Holding is expected to generate 2.33 times more return on investment than MarineMax. However, Oriental Culture is 2.33 times more volatile than MarineMax. It trades about 0.04 of its potential returns per unit of risk. MarineMax is currently generating about 0.03 per unit of risk. If you would invest 111.00 in Oriental Culture Holding on August 31, 2024 and sell it today you would earn a total of 4.00 from holding Oriental Culture Holding or generate 3.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oriental Culture Holding vs. MarineMax
Performance |
| Timeline |
| Oriental Culture Holding |
| MarineMax |
Oriental Culture and MarineMax Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oriental Culture and MarineMax
The main advantage of trading using opposite Oriental Culture and MarineMax positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oriental Culture position performs unexpectedly, MarineMax 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 MarineMax will offset losses from the drop in MarineMax's long position.| Oriental Culture vs. Hour Loop | Oriental Culture vs. Jowell Global | Oriental Culture vs. Qurate Retail Series | Oriental Culture vs. Emerge Commerce |
| MarineMax vs. National Vision Holdings | MarineMax vs. Sally Beauty Holdings | MarineMax vs. Sportsmans | MarineMax vs. 1 800 FLOWERSCOM |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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