Correlation Between Marcus Millichap and Ascendas India

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

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

Diversification Opportunities for Marcus Millichap and Ascendas India

-0.78

Correlation Coefficient

Marcus Millichap  Ascendas India

Pay attention - limited upside

The 3 months correlation between Marcus and Ascendas is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Marcus Millichap and Ascendas India Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ascendas India Trust and Marcus Millichap 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 Millichap are associated (or correlated) with Ascendas India. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ascendas India Trust has no effect on the direction of Marcus Millichap i.e., Marcus Millichap and Ascendas India go up and down completely randomly.

Pair Corralation between Marcus Millichap and Ascendas India

Considering the 90-day investment horizon Marcus Millichap is expected to generate 0.76 times more return on investment than Ascendas India. However, Marcus Millichap is 1.31 times less risky than Ascendas India. It trades about 0.1 of its potential returns per unit of risk. Ascendas India Trust is currently generating about -0.1 per unit of risk. If you would invest  3,692  in Marcus Millichap on September 19, 2024 and sell it today you would earn a total of  233.00  from holding Marcus Millichap or generate 6.31% return on investment over 90 days.

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

Marcus Millichap  vs.  Ascendas India Trust

Marcus Millichap

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Marcus Millichap has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong primary indicators, Marcus Millichap is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Ascendas India Trust

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Ascendas India Trust has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's fundamental indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with Marcus Millichap and Ascendas India

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

The idea behind Marcus Millichap and Ascendas India Trust 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.