Correlation Between Marathon Group and Ehouse Global
Can any of the company-specific risk be diversified away by investing in both Marathon Group and Ehouse Global 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 Marathon Group and Ehouse Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Marathon Group Corp and Ehouse Global, you can compare the effects of market volatilities on Marathon Group and Ehouse Global 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 Marathon Group with a short position of Ehouse Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marathon Group and Ehouse Global.
Diversification Opportunities for Marathon Group and Ehouse Global
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Marathon and Ehouse is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Marathon Group Corp and Ehouse Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ehouse Global and Marathon Group 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 Marathon Group Corp are associated (or correlated) with Ehouse Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ehouse Global has no effect on the direction of Marathon Group i.e., Marathon Group and Ehouse Global go up and down completely randomly.
Pair Corralation between Marathon Group and Ehouse Global
If you would invest 0.00 in Ehouse Global on November 28, 2024 and sell it today you would earn a total of 0.00 from holding Ehouse Global or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Marathon Group Corp vs. Ehouse Global
Performance |
| Timeline |
| Marathon Group Corp |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| Ehouse Global |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Marathon Group and Ehouse Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marathon Group and Ehouse Global
The main advantage of trading using opposite Marathon Group and Ehouse Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marathon Group position performs unexpectedly, Ehouse Global 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 Ehouse Global will offset losses from the drop in Ehouse Global's long position.The idea behind Marathon Group Corp and Ehouse Global pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Ehouse Global vs. Afya | Ehouse Global vs. Helmerich and Payne | Ehouse Global vs. Tenaris SA ADR | Ehouse Global vs. Yuexiu Transport Infrastructure |
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 CEOs Directory module to screen CEOs from public companies around the world.
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