Correlation Between Onewater Marine and MCBC Holdings
Can any of the company-specific risk be diversified away by investing in both Onewater Marine and MCBC Holdings 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 Onewater Marine and MCBC Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Onewater Marine and MCBC Holdings, you can compare the effects of market volatilities on Onewater Marine and MCBC Holdings 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 Onewater Marine with a short position of MCBC Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Onewater Marine and MCBC Holdings.
Diversification Opportunities for Onewater Marine and MCBC Holdings
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Onewater and MCBC is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Onewater Marine and MCBC Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MCBC Holdings and Onewater Marine 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 Onewater Marine are associated (or correlated) with MCBC Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MCBC Holdings has no effect on the direction of Onewater Marine i.e., Onewater Marine and MCBC Holdings go up and down completely randomly.
Pair Corralation between Onewater Marine and MCBC Holdings
Given the investment horizon of 90 days Onewater Marine is expected to under-perform the MCBC Holdings. In addition to that, Onewater Marine is 1.07 times more volatile than MCBC Holdings. It trades about -0.11 of its total potential returns per unit of risk. MCBC Holdings is currently generating about 0.03 per unit of volatility. If you would invest 1,774 in MCBC Holdings on November 1, 2024 and sell it today you would earn a total of 57.00 from holding MCBC Holdings or generate 3.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Onewater Marine vs. MCBC Holdings
Performance |
| Timeline |
| Onewater Marine |
| MCBC Holdings |
Onewater Marine and MCBC Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Onewater Marine and MCBC Holdings
The main advantage of trading using opposite Onewater Marine and MCBC Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Onewater Marine position performs unexpectedly, MCBC Holdings 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 MCBC Holdings will offset losses from the drop in MCBC Holdings' long position.| Onewater Marine vs. LCI Industries | Onewater Marine vs. MCBC Holdings | Onewater Marine vs. BRP Inc | Onewater Marine vs. Malibu Boats |
| MCBC Holdings vs. Malibu Boats | MCBC Holdings vs. Onewater Marine | MCBC Holdings vs. Heidrick Struggles International | MCBC Holdings vs. Johnson Outdoors |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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