Correlation Between GBX International and Marchex
Can any of the company-specific risk be diversified away by investing in both GBX International and Marchex 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 GBX International and Marchex into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GBX International Group and Marchex, you can compare the effects of market volatilities on GBX International and Marchex 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 GBX International with a short position of Marchex. Check out your portfolio center. Please also check ongoing floating volatility patterns of GBX International and Marchex.
Diversification Opportunities for GBX International and Marchex
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between GBX and Marchex is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding GBX International Group and Marchex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marchex and GBX International 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 GBX International Group are associated (or correlated) with Marchex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marchex has no effect on the direction of GBX International i.e., GBX International and Marchex go up and down completely randomly.
Pair Corralation between GBX International and Marchex
Given the investment horizon of 90 days GBX International Group is expected to generate 26.16 times more return on investment than Marchex. However, GBX International is 26.16 times more volatile than Marchex. It trades about 0.09 of its potential returns per unit of risk. Marchex is currently generating about 0.03 per unit of risk. If you would invest 6.90 in GBX International Group on September 24, 2024 and sell it today you would lose (6.88) from holding GBX International Group or give up 99.71% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
GBX International Group vs. Marchex
Performance |
Timeline |
GBX International |
Marchex |
GBX International and Marchex Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with GBX International and Marchex
The main advantage of trading using opposite GBX International and Marchex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GBX International position performs unexpectedly, Marchex 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 Marchex will offset losses from the drop in Marchex's long position.GBX International vs. Marchex | GBX International vs. Snipp Interactive | GBX International vs. Emerald Expositions Events |
Marchex vs. CMG Holdings Group | Marchex vs. Beyond Commerce | Marchex vs. Mastermind | Marchex vs. Aquagold International |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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