Correlation Between Moxian and Marchex

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

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

Diversification Opportunities for Moxian and Marchex

0.24

Correlation Coefficient

Moxian  Marchex

Modest diversification

The 3 months correlation between Moxian and Marchex is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Moxian Inc and Marchex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marchex and Moxian 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 Moxian Inc 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 Moxian i.e., Moxian and Marchex go up and down completely randomly.

Pair Corralation between Moxian and Marchex

If you would invest  174.00  in Marchex on September 17, 2024 and sell it today you would earn a total of  33.00  from holding Marchex or generate 18.97% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	1.56%
Values	Daily Returns

Moxian Inc  vs.  Marchex

Moxian Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Moxian Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Moxian is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Marchex

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Marchex are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unsteady technical indicators, Marchex showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Moxian and Marchex

The main advantage of trading using opposite Moxian and Marchex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Moxian 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.

The idea behind Moxian Inc and Marchex 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.