Correlation Between Deere and Marizyme

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

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

Diversification Opportunities for Deere and Marizyme

0.49

Correlation Coefficient

Deere  Marizyme

Very weak diversification

The 3 months correlation between Deere and Marizyme is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Deere Company and Marizyme in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marizyme and Deere 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 Deere Company are associated (or correlated) with Marizyme. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marizyme has no effect on the direction of Deere i.e., Deere and Marizyme go up and down completely randomly.

Pair Corralation between Deere and Marizyme

Allowing for the 90-day total investment horizon Deere is expected to generate 85.89 times less return on investment than Marizyme. But when comparing it to its historical volatility, Deere Company is 72.11 times less risky than Marizyme. It trades about 0.1 of its potential returns per unit of risk. Marizyme is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  2.00  in Marizyme on December 25, 2024 and sell it today you would lose (1.19) from holding Marizyme or give up 59.5% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	98.36%
Values	Daily Returns

Deere Company  vs.  Marizyme

Deere Company

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Deere Company are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating technical and fundamental indicators, Deere may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Marizyme

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Marizyme are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of very inconsistent basic indicators, Marizyme displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Deere and Marizyme

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

The idea behind Deere Company and Marizyme 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.