Correlation Between Evercore Partners and Marex Group

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

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

Diversification Opportunities for Evercore Partners and Marex Group

0.02

Correlation Coefficient

Evercore Partners  Marex Group

Significant diversification

The 3 months correlation between Evercore and Marex is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Evercore Partners and Marex Group plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marex Group plc and Evercore Partners 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 Evercore Partners are associated (or correlated) with Marex Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marex Group plc has no effect on the direction of Evercore Partners i.e., Evercore Partners and Marex Group go up and down completely randomly.

Pair Corralation between Evercore Partners and Marex Group

Considering the 90-day investment horizon Evercore Partners is expected to under-perform the Marex Group. But the stock apears to be less risky and, when comparing its historical volatility, Evercore Partners is 1.14 times less risky than Marex Group. The stock trades about -0.19 of its potential returns per unit of risk. The Marex Group plc is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  3,180  in Marex Group plc on December 27, 2024 and sell it today you would earn a total of  269.00  from holding Marex Group plc or generate 8.46% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Evercore Partners  vs.  Marex Group plc

Evercore Partners

Risk-Adjusted Performance

Very Weak

Over the last 90 days Evercore Partners has generated negative risk-adjusted returns adding no value to investors with long positions. Even with uncertain performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in April 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Marex Group plc

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Marex Group plc are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of fairly conflicting basic indicators, Marex Group may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Evercore Partners and Marex Group

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

The idea behind Evercore Partners and Marex Group plc 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.