Correlation Between Container Store and MarineMax
Can any of the company-specific risk be diversified away by investing in both Container Store 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 Container Store and MarineMax into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Container Store Group and MarineMax, you can compare the effects of market volatilities on Container Store 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 Container Store with a short position of MarineMax. Check out your portfolio center. Please also check ongoing floating volatility patterns of Container Store and MarineMax.
Diversification Opportunities for Container Store and MarineMax
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Container and MarineMax is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Container Store Group and MarineMax in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MarineMax and Container Store 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 Container Store Group 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 Container Store i.e., Container Store and MarineMax go up and down completely randomly.
Pair Corralation between Container Store and MarineMax
Considering the 90-day investment horizon Container Store Group is expected to under-perform the MarineMax. In addition to that, Container Store is 1.7 times more volatile than MarineMax. It trades about -0.25 of its total potential returns per unit of risk. MarineMax is currently generating about 0.11 per unit of volatility. If you would invest 3,004 in MarineMax on August 31, 2024 and sell it today you would earn a total of 248.00 from holding MarineMax or generate 8.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Container Store Group vs. MarineMax
Performance |
| Timeline |
| Container Store Group |
| MarineMax |
Container Store and MarineMax Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Container Store and MarineMax
The main advantage of trading using opposite Container Store and MarineMax positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Container Store 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.| Container Store vs. Target | Container Store vs. Lowes Companies | Container Store vs. Kohls Corp | Container Store vs. Walmart |
| 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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