Correlation Between Workday and Marin Software
Can any of the company-specific risk be diversified away by investing in both Workday and Marin Software 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 Workday and Marin Software into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Workday and Marin Software, you can compare the effects of market volatilities on Workday and Marin Software 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 Workday with a short position of Marin Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Workday and Marin Software.
Diversification Opportunities for Workday and Marin Software
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Workday and Marin is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Workday and Marin Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marin Software and Workday 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 Workday are associated (or correlated) with Marin Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marin Software has no effect on the direction of Workday i.e., Workday and Marin Software go up and down completely randomly.
Pair Corralation between Workday and Marin Software
Given the investment horizon of 90 days Workday is expected to generate 1.94 times less return on investment than Marin Software. But when comparing it to its historical volatility, Workday is 1.14 times less risky than Marin Software. It trades about 0.08 of its potential returns per unit of risk. Marin Software is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 208.00 in Marin Software on September 3, 2024 and sell it today you would earn a total of 16.00 from holding Marin Software or generate 7.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Workday vs. Marin Software
Performance |
| Timeline |
| Workday |
| Marin Software |
Workday and Marin Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Workday and Marin Software
The main advantage of trading using opposite Workday and Marin Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Workday position performs unexpectedly, Marin Software 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 Marin Software will offset losses from the drop in Marin Software's long position.| Workday vs. Intuit Inc | Workday vs. Zoom Video Communications | Workday vs. ServiceNow | Workday vs. Snowflake |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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