Correlation Between Marine Products and Sacks Parente

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

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

Diversification Opportunities for Marine Products and Sacks Parente

-0.12

Correlation Coefficient

Marine Products  Sacks Parente

Good diversification

The 3 months correlation between Marine and Sacks is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Marine Products and Sacks Parente Golf, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sacks Parente Golf, 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 Sacks Parente. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sacks Parente Golf, has no effect on the direction of Marine Products i.e., Marine Products and Sacks Parente go up and down completely randomly.

Pair Corralation between Marine Products and Sacks Parente

Considering the 90-day investment horizon Marine Products is expected to under-perform the Sacks Parente. But the stock apears to be less risky and, when comparing its historical volatility, Marine Products is 11.38 times less risky than Sacks Parente. The stock trades about -0.02 of its potential returns per unit of risk. The Sacks Parente Golf, is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  38.00  in Sacks Parente Golf, on December 28, 2024 and sell it today you would lose (28.00) from holding Sacks Parente Golf, or give up 73.68% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	86.67%
Values	Daily Returns

Marine Products  vs.  Sacks Parente Golf,

Marine Products

Risk-Adjusted Performance

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 fairly strong basic indicators, Marine Products is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Sacks Parente Golf,

Risk-Adjusted Performance

Very Weak

Over the last 90 days Sacks Parente Golf, has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather conflicting technical and fundamental indicators, Sacks Parente may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Marine Products and Sacks Parente

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

The idea behind Marine Products and Sacks Parente Golf, 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.