Correlation Between Marine Products and Fracmaster

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

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

Diversification Opportunities for Marine Products and Fracmaster

0.0

Correlation Coefficient

Marine Products  Fracmaster

Pay attention - limited upside

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

Pair Corralation between Marine Products and Fracmaster

If you would invest (100.00) in Fracmaster on October 11, 2024 and sell it today you would earn a total of  100.00  from holding Fracmaster 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

Marine Products  vs.  Fracmaster

Marine Products

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Marine Products has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unfluctuating performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Fracmaster

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Fracmaster has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong primary indicators, Fracmaster is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Marine Products and Fracmaster

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

The idea behind Marine Products and Fracmaster 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..