Correlation Between Marstons PLC and AW Revenue

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

By analyzing existing cross correlation between Marstons PLC and AW Revenue Royalties, you can compare the effects of market volatilities on Marstons PLC and AW Revenue 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 Marstons PLC with a short position of AW Revenue. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marstons PLC and AW Revenue.

Diversification Opportunities for Marstons PLC and AW Revenue

0.0

Correlation Coefficient

Marstons PLC  AW Revenue

Pay attention - limited upside

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

Pair Corralation between Marstons PLC and AW Revenue

If you would invest (100.00) in AW Revenue Royalties on December 29, 2024 and sell it today you would earn a total of  100.00  from holding AW Revenue Royalties or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Marstons PLC  vs.  AW Revenue Royalties

Marstons PLC

Risk-Adjusted Performance

Very Weak

Over the last 90 days Marstons PLC has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

AW Revenue Royalties

Risk-Adjusted Performance

Very Weak

Over the last 90 days AW Revenue Royalties has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, AW Revenue is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Marstons PLC and AW Revenue

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

The idea behind Marstons PLC and AW Revenue Royalties 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.