Correlation Between Zhong Yang and Marex Group
Can any of the company-specific risk be diversified away by investing in both Zhong Yang and Marex Group 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 Zhong Yang and Marex Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Zhong Yang Financial and Marex Group plc, you can compare the effects of market volatilities on Zhong Yang and Marex Group 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 Zhong Yang with a short position of Marex Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhong Yang and Marex Group.
Diversification Opportunities for Zhong Yang and Marex Group
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Zhong and Marex is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Zhong Yang Financial and Marex Group plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marex Group plc and Zhong Yang 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 Zhong Yang Financial are associated (or correlated) with Marex Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marex Group plc has no effect on the direction of Zhong Yang i.e., Zhong Yang and Marex Group go up and down completely randomly.
Pair Corralation between Zhong Yang and Marex Group
Considering the 90-day investment horizon Zhong Yang is expected to generate 48.27 times less return on investment than Marex Group. In addition to that, Zhong Yang is 5.8 times more volatile than Marex Group plc. It trades about 0.0 of its total potential returns per unit of risk. Marex Group plc is currently generating about 0.18 per unit of volatility. If you would invest 2,439 in Marex Group plc on September 2, 2024 and sell it today you would earn a total of 489.00 from holding Marex Group plc or generate 20.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhong Yang Financial vs. Marex Group plc
Performance |
| Timeline |
| Zhong Yang Financial |
| Marex Group plc |
Zhong Yang and Marex Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhong Yang and Marex Group
The main advantage of trading using opposite Zhong Yang and Marex Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhong Yang position performs unexpectedly, Marex Group 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 Marex Group will offset losses from the drop in Marex Group's long position.| Zhong Yang vs. Netcapital | Zhong Yang vs. Applied Blockchain | Zhong Yang vs. Magic Empire Global | Zhong Yang vs. Lazard |
| Marex Group vs. Lazard | Marex Group vs. PJT Partners | Marex Group vs. Houlihan Lokey | Marex Group vs. Perella Weinberg Partners |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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