Correlation Between Fica Empreendimentos and Marathon Petroleum

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

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

Diversification Opportunities for Fica Empreendimentos and Marathon Petroleum

0.0

Correlation Coefficient

Fica Empreendimentos  Marathon Petroleum

Pay attention - limited upside

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

Pair Corralation between Fica Empreendimentos and Marathon Petroleum

If you would invest  0.00  in Fica Empreendimentos Imobiliarios on October 4, 2024 and sell it today you would earn a total of  0.00  from holding Fica Empreendimentos Imobiliarios or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	5.26%
Values	Daily Returns

Fica Empreendimentos Imobiliar  vs.  Marathon Petroleum

Fica Empreendimentos

Risk-Adjusted Performance

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Very Weak

Over the last 90 days Fica Empreendimentos Imobiliarios has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Fica Empreendimentos is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Marathon Petroleum

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Marathon Petroleum has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Fica Empreendimentos and Marathon Petroleum

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

The idea behind Fica Empreendimentos Imobiliarios and Marathon Petroleum 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.