Correlation Between XBP Europe and Marine Products
Can any of the company-specific risk be diversified away by investing in both XBP Europe 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 XBP Europe and Marine Products into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between XBP Europe Holdings and Marine Products, you can compare the effects of market volatilities on XBP Europe 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 XBP Europe with a short position of Marine Products. Check out your portfolio center. Please also check ongoing floating volatility patterns of XBP Europe and Marine Products.
Diversification Opportunities for XBP Europe and Marine Products
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between XBP and Marine is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding XBP Europe Holdings and Marine Products in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marine Products and XBP Europe 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 XBP Europe Holdings 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 XBP Europe i.e., XBP Europe and Marine Products go up and down completely randomly.
Pair Corralation between XBP Europe and Marine Products
Considering the 90-day investment horizon XBP Europe Holdings is expected to under-perform the Marine Products. In addition to that, XBP Europe is 4.52 times more volatile than Marine Products. It trades about -0.03 of its total potential returns per unit of risk. Marine Products is currently generating about 0.02 per unit of volatility. If you would invest 932.00 in Marine Products on September 4, 2024 and sell it today you would earn a total of 48.00 from holding Marine Products or generate 5.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
XBP Europe Holdings vs. Marine Products
Performance |
| Timeline |
| XBP Europe Holdings |
| Marine Products |
XBP Europe and Marine Products Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XBP Europe and Marine Products
The main advantage of trading using opposite XBP Europe and Marine Products positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XBP Europe 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.| XBP Europe vs. Alarum Technologies | XBP Europe vs. Nutanix | XBP Europe vs. Palo Alto Networks | XBP Europe vs. GigaCloud Technology Class |
| 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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