Correlation Between Marchex and Nabors Industries
Can any of the company-specific risk be diversified away by investing in both Marchex and Nabors Industries 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 Marchex and Nabors Industries into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Marchex and Nabors Industries, you can compare the effects of market volatilities on Marchex and Nabors Industries 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 Marchex with a short position of Nabors Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marchex and Nabors Industries.
Diversification Opportunities for Marchex and Nabors Industries
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Marchex and Nabors is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Marchex and Nabors Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nabors Industries and Marchex 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 Marchex are associated (or correlated) with Nabors Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nabors Industries has no effect on the direction of Marchex i.e., Marchex and Nabors Industries go up and down completely randomly.
Pair Corralation between Marchex and Nabors Industries
Given the investment horizon of 90 days Marchex is expected to generate 0.59 times more return on investment than Nabors Industries. However, Marchex is 1.69 times less risky than Nabors Industries. It trades about 0.06 of its potential returns per unit of risk. Nabors Industries is currently generating about -0.03 per unit of risk. If you would invest 182.00 in Marchex on October 9, 2024 and sell it today you would earn a total of 21.00 from holding Marchex or generate 11.54% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Marchex vs. Nabors Industries
Performance |
Timeline |
Marchex |
Nabors Industries |
Marchex and Nabors Industries Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Marchex and Nabors Industries
The main advantage of trading using opposite Marchex and Nabors Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marchex position performs unexpectedly, Nabors Industries 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 Nabors Industries will offset losses from the drop in Nabors Industries' long position.Marchex vs. Entravision Communications | ||
Marchex vs. Direct Digital Holdings | ||
Marchex vs. Cimpress NV | ||
Marchex vs. Townsquare Media |
Nabors Industries vs. United Natural Foods | ||
Nabors Industries vs. Hurco Companies | ||
Nabors Industries vs. Boston Beer | ||
Nabors Industries vs. Park Ohio Holdings |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
Stocks Directory Find actively traded stocks across global markets | |
Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
Content Syndication Quickly integrate customizable finance content to your own investment portal | |
Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
Equity Valuation Check real value of public entities based on technical and fundamental data |