Correlation Between CINCINNATI and Marchex
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By analyzing existing cross correlation between CINCINNATI GAS ELEC and Marchex, you can compare the effects of market volatilities on CINCINNATI and Marchex 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 CINCINNATI with a short position of Marchex. Check out your portfolio center. Please also check ongoing floating volatility patterns of CINCINNATI and Marchex.
Diversification Opportunities for CINCINNATI and Marchex
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CINCINNATI and Marchex is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding CINCINNATI GAS ELEC and Marchex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marchex and CINCINNATI 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 CINCINNATI GAS ELEC are associated (or correlated) with Marchex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marchex has no effect on the direction of CINCINNATI i.e., CINCINNATI and Marchex go up and down completely randomly.
Pair Corralation between CINCINNATI and Marchex
Assuming the 90 days trading horizon CINCINNATI GAS ELEC is expected to under-perform the Marchex. But the bond apears to be less risky and, when comparing its historical volatility, CINCINNATI GAS ELEC is 3.7 times less risky than Marchex. The bond trades about -0.1 of its potential returns per unit of risk. The Marchex is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 197.00 in Marchex on September 3, 2024 and sell it today you would lose (15.00) from holding Marchex or give up 7.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 50.0% |
| Values | Daily Returns |
CINCINNATI GAS ELEC vs. Marchex
Performance |
| Timeline |
| CINCINNATI GAS ELEC |
| Marchex |
CINCINNATI and Marchex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CINCINNATI and Marchex
The main advantage of trading using opposite CINCINNATI and Marchex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CINCINNATI position performs unexpectedly, Marchex 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 Marchex will offset losses from the drop in Marchex's long position.| CINCINNATI vs. Marchex | CINCINNATI vs. Inhibrx | CINCINNATI vs. Dolphin Entertainment | CINCINNATI vs. Organic Sales and |
| Marchex vs. Entravision Communications | Marchex vs. Direct Digital Holdings | Marchex vs. Cimpress NV | Marchex vs. Townsquare Media |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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