Correlation Between FEDEX and Marine Products
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By analyzing existing cross correlation between FEDEX P 405 and Marine Products, you can compare the effects of market volatilities on FEDEX 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 FEDEX with a short position of Marine Products. Check out your portfolio center. Please also check ongoing floating volatility patterns of FEDEX and Marine Products.
Diversification Opportunities for FEDEX and Marine Products
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between FEDEX and Marine is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding FEDEX P 405 and Marine Products in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marine Products and FEDEX 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 FEDEX P 405 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 FEDEX i.e., FEDEX and Marine Products go up and down completely randomly.
Pair Corralation between FEDEX and Marine Products
Assuming the 90 days trading horizon FEDEX is expected to generate 1.51 times less return on investment than Marine Products. But when comparing it to its historical volatility, FEDEX P 405 is 1.62 times less risky than Marine Products. It trades about 0.23 of its potential returns per unit of risk. Marine Products is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 930.00 in Marine Products on September 4, 2024 and sell it today you would earn a total of 74.00 from holding Marine Products or generate 7.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 85.71% |
| Values | Daily Returns |
FEDEX P 405 vs. Marine Products
Performance |
| Timeline |
| FEDEX P 405 |
| Marine Products |
FEDEX and Marine Products Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FEDEX and Marine Products
The main advantage of trading using opposite FEDEX and Marine Products positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FEDEX 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 FEDEX P 405 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.| Marine Products vs. Thor Industries | Marine Products vs. BRP Inc | Marine Products vs. EZGO Technologies | Marine Products vs. Polaris Industries |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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