Correlation Between Digimarc and MARTIN
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By analyzing existing cross correlation between Digimarc and MARTIN MARIETTA MATLS, you can compare the effects of market volatilities on Digimarc and MARTIN 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 Digimarc with a short position of MARTIN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Digimarc and MARTIN.
Diversification Opportunities for Digimarc and MARTIN
Excellent diversification
The 3 months correlation between Digimarc and MARTIN is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Digimarc and MARTIN MARIETTA MATLS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MARTIN MARIETTA MATLS and Digimarc 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 Digimarc are associated (or correlated) with MARTIN. 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 MATLS has no effect on the direction of Digimarc i.e., Digimarc and MARTIN go up and down completely randomly.
Pair Corralation between Digimarc and MARTIN
Given the investment horizon of 90 days Digimarc is expected to generate 2.91 times more return on investment than MARTIN. However, Digimarc is 2.91 times more volatile than MARTIN MARIETTA MATLS. It trades about 0.17 of its potential returns per unit of risk. MARTIN MARIETTA MATLS is currently generating about -0.04 per unit of risk. If you would invest 3,371 in Digimarc on September 24, 2024 and sell it today you would earn a total of 321.00 from holding Digimarc or generate 9.52% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 95.24% |
Values | Daily Returns |
Digimarc vs. MARTIN MARIETTA MATLS
Performance |
Timeline |
Digimarc |
MARTIN MARIETTA MATLS |
Digimarc and MARTIN Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Digimarc and MARTIN
The main advantage of trading using opposite Digimarc and MARTIN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Digimarc position performs unexpectedly, MARTIN 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 will offset losses from the drop in MARTIN's long position.The idea behind Digimarc and MARTIN MARIETTA MATLS 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.MARTIN vs. NL Industries | MARTIN vs. Park Electrochemical | MARTIN vs. European Wax Center | MARTIN vs. Chester Mining |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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