Correlation Between Altisource Asset and Marygold Companies

Can any of the company-specific risk be diversified away by investing in both Altisource Asset and Marygold Companies 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 Altisource Asset and Marygold Companies into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Altisource Asset Management and Marygold Companies, you can compare the effects of market volatilities on Altisource Asset and Marygold Companies 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 Altisource Asset with a short position of Marygold Companies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Altisource Asset and Marygold Companies.

Diversification Opportunities for Altisource Asset and Marygold Companies

0.0

Correlation Coefficient

Altisource Asset  Marygold Companies

Pay attention - limited upside

The 3 months correlation between Altisource and Marygold is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Altisource Asset Management and Marygold Companies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marygold Companies and Altisource Asset 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 Altisource Asset Management are associated (or correlated) with Marygold Companies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marygold Companies has no effect on the direction of Altisource Asset i.e., Altisource Asset and Marygold Companies go up and down completely randomly.

Pair Corralation between Altisource Asset and Marygold Companies

If you would invest (100.00) in Altisource Asset Management on December 24, 2024 and sell it today you would earn a total of  100.00  from holding Altisource Asset Management or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Altisource Asset Management  vs.  Marygold Companies

Altisource Asset Man

Risk-Adjusted Performance

Very Weak

Over the last 90 days Altisource Asset Management has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound primary indicators, Altisource Asset is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Marygold Companies

Risk-Adjusted Performance

Very Weak

Over the last 90 days Marygold Companies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's essential indicators remain rather sound which may send shares a bit higher in April 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with Altisource Asset and Marygold Companies

The main advantage of trading using opposite Altisource Asset and Marygold Companies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Altisource Asset position performs unexpectedly, Marygold Companies 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 Marygold Companies will offset losses from the drop in Marygold Companies' long position.

The idea behind Altisource Asset Management and Marygold Companies 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.

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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.