Correlation Between FlyExclusive, and Marten Transport

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

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

Diversification Opportunities for FlyExclusive, and Marten Transport

-0.44

Correlation Coefficient

FlyExclusive,  Marten Transport

Very good diversification

The 3 months correlation between FlyExclusive, and Marten is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding flyExclusive, and Marten Transport in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marten Transport and FlyExclusive, 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 flyExclusive, are associated (or correlated) with Marten Transport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marten Transport has no effect on the direction of FlyExclusive, i.e., FlyExclusive, and Marten Transport go up and down completely randomly.

Pair Corralation between FlyExclusive, and Marten Transport

Given the investment horizon of 90 days flyExclusive, is expected to generate 4.02 times more return on investment than Marten Transport. However, FlyExclusive, is 4.02 times more volatile than Marten Transport. It trades about 0.35 of its potential returns per unit of risk. Marten Transport is currently generating about -0.36 per unit of risk. If you would invest  230.00  in flyExclusive, on October 8, 2024 and sell it today you would earn a total of  86.00  from holding flyExclusive, or generate 37.39% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

flyExclusive,  vs.  Marten Transport

flyExclusive,

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in flyExclusive, are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of fairly conflicting basic indicators, FlyExclusive, showed solid returns over the last few months and may actually be approaching a breakup point.

Marten Transport

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Marten Transport has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Marten Transport is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with FlyExclusive, and Marten Transport

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

The idea behind flyExclusive, and Marten Transport 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.

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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.