Correlation Between Marcus and Endeavor Group

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

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

Diversification Opportunities for Marcus and Endeavor Group

0.62

Correlation Coefficient

Marcus  Endeavor Group

Poor diversification

The 3 months correlation between Marcus and Endeavor is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Marcus and Endeavor Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Endeavor Group Holdings and Marcus 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 Marcus are associated (or correlated) with Endeavor Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Endeavor Group Holdings has no effect on the direction of Marcus i.e., Marcus and Endeavor Group go up and down completely randomly.

Pair Corralation between Marcus and Endeavor Group

Considering the 90-day investment horizon Marcus is expected to under-perform the Endeavor Group. But the stock apears to be less risky and, when comparing its historical volatility, Marcus is 1.2 times less risky than Endeavor Group. The stock trades about -0.16 of its potential returns per unit of risk. The Endeavor Group Holdings is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest  3,115  in Endeavor Group Holdings on December 29, 2024 and sell it today you would lose (190.00) from holding Endeavor Group Holdings or give up 6.1% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	93.44%
Values	Daily Returns

Marcus  vs.  Endeavor Group Holdings

Marcus

Risk-Adjusted Performance

Very Weak

Over the last 90 days Marcus has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's fundamental indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Endeavor Group Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days Endeavor Group Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable fundamental indicators, Endeavor Group is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Marcus and Endeavor Group

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

The idea behind Marcus and Endeavor Group Holdings 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.