Correlation Between 12769GAB6 and Marine Products

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Can any of the company-specific risk be diversified away by investing in both 12769GAB6 and Marine Products 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 12769GAB6 and Marine Products into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CZR 7 15 FEB 30 and Marine Products, you can compare the effects of market volatilities on 12769GAB6 and Marine Products 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 12769GAB6 with a short position of Marine Products. Check out your portfolio center. Please also check ongoing floating volatility patterns of 12769GAB6 and Marine Products.

Diversification Opportunities for 12769GAB6 and Marine Products

-0.51
  Correlation Coefficient

Excellent diversification

The 3 months correlation between 12769GAB6 and Marine is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding CZR 7 15 FEB 30 and Marine Products in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marine Products and 12769GAB6 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 CZR 7 15 FEB 30 are associated (or correlated) with Marine Products. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marine Products has no effect on the direction of 12769GAB6 i.e., 12769GAB6 and Marine Products go up and down completely randomly.

Pair Corralation between 12769GAB6 and Marine Products

Assuming the 90 days trading horizon CZR 7 15 FEB 30 is expected to under-perform the Marine Products. But the bond apears to be less risky and, when comparing its historical volatility, CZR 7 15 FEB 30 is 4.49 times less risky than Marine Products. The bond trades about -0.04 of its potential returns per unit of risk. The Marine Products is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  960.00  in Marine Products on September 3, 2024 and sell it today you would earn a total of  44.00  from holding Marine Products or generate 4.58% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy98.38%
ValuesDaily Returns

CZR 7 15 FEB 30  vs.  Marine Products

 Performance 
       Timeline  
12769GAB6 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days CZR 7 15 FEB 30 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest uncertain performance, the Bond's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for CZR 7 15 FEB 30 investors.
Marine Products 

Risk-Adjusted Performance

8 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Marine Products are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating basic indicators, Marine Products may actually be approaching a critical reversion point that can send shares even higher in January 2025.

12769GAB6 and Marine Products Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with 12769GAB6 and Marine Products

The main advantage of trading using opposite 12769GAB6 and Marine Products positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 12769GAB6 position performs unexpectedly, Marine Products 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 Marine Products will offset losses from the drop in Marine Products' long position.
The idea behind CZR 7 15 FEB 30 and Marine Products 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.
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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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.

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