Correlation Between ZJK Industrial and Martin Marietta
Can any of the company-specific risk be diversified away by investing in both ZJK Industrial and Martin Marietta 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 ZJK Industrial and Martin Marietta into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ZJK Industrial Co, and Martin Marietta Materials, you can compare the effects of market volatilities on ZJK Industrial and Martin Marietta 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 ZJK Industrial with a short position of Martin Marietta. Check out your portfolio center. Please also check ongoing floating volatility patterns of ZJK Industrial and Martin Marietta.
Diversification Opportunities for ZJK Industrial and Martin Marietta
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ZJK and Martin is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding ZJK Industrial Co, and Martin Marietta Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Martin Marietta Materials and ZJK Industrial 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 ZJK Industrial Co, are associated (or correlated) with Martin Marietta. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Martin Marietta Materials has no effect on the direction of ZJK Industrial i.e., ZJK Industrial and Martin Marietta go up and down completely randomly.
Pair Corralation between ZJK Industrial and Martin Marietta
Considering the 90-day investment horizon ZJK Industrial Co, is expected to generate 6.63 times more return on investment than Martin Marietta. However, ZJK Industrial is 6.63 times more volatile than Martin Marietta Materials. It trades about 0.11 of its potential returns per unit of risk. Martin Marietta Materials is currently generating about 0.06 per unit of risk. If you would invest 500.00 in ZJK Industrial Co, on August 28, 2024 and sell it today you would earn a total of 146.00 from holding ZJK Industrial Co, or generate 29.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 20.1% |
| Values | Daily Returns |
ZJK Industrial Co, vs. Martin Marietta Materials
Performance |
| Timeline |
| ZJK Industrial Co, |
| Martin Marietta Materials |
ZJK Industrial and Martin Marietta Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ZJK Industrial and Martin Marietta
The main advantage of trading using opposite ZJK Industrial and Martin Marietta positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ZJK Industrial position performs unexpectedly, Martin Marietta 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 Martin Marietta will offset losses from the drop in Martin Marietta's long position.| ZJK Industrial vs. Omni Health | ZJK Industrial vs. Axalta Coating Systems | ZJK Industrial vs. US Global Investors | ZJK Industrial vs. Waste Management |
| Martin Marietta vs. Holcim | Martin Marietta vs. Lafargeholcim Ltd ADR | Martin Marietta vs. The Monarch Cement |
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.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |