Correlation Between Vita Coco and Marti Technologies

Can any of the company-specific risk be diversified away by investing in both Vita Coco and Marti Technologies 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 Vita Coco and Marti Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Vita Coco and Marti Technologies, you can compare the effects of market volatilities on Vita Coco and Marti Technologies 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 Vita Coco with a short position of Marti Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vita Coco and Marti Technologies.

Diversification Opportunities for Vita Coco and Marti Technologies

-0.19

Correlation Coefficient

Vita Coco  Marti Technologies

Good diversification

The 3 months correlation between Vita and Marti is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Vita Coco and Marti Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marti Technologies and Vita Coco 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 Vita Coco are associated (or correlated) with Marti Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marti Technologies has no effect on the direction of Vita Coco i.e., Vita Coco and Marti Technologies go up and down completely randomly.

Pair Corralation between Vita Coco and Marti Technologies

Given the investment horizon of 90 days Vita Coco is expected to under-perform the Marti Technologies. But the stock apears to be less risky and, when comparing its historical volatility, Vita Coco is 1.52 times less risky than Marti Technologies. The stock trades about -0.16 of its potential returns per unit of risk. The Marti Technologies is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  305.00  in Marti Technologies on December 4, 2024 and sell it today you would earn a total of  35.00  from holding Marti Technologies or generate 11.48% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	95.24%
Values	Daily Returns

Vita Coco  vs.  Marti Technologies

Vita Coco

Risk-Adjusted Performance

Very Weak

Over the last 90 days Vita Coco has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest abnormal performance, the Stock's fundamental indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Marti Technologies

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Marti Technologies are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, Marti Technologies may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Vita Coco and Marti Technologies

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

The idea behind Vita Coco and Marti Technologies 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.

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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.