Correlation Between Marine Products and Solidion Technology

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

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

Diversification Opportunities for Marine Products and Solidion Technology

0.42

Correlation Coefficient

Marine Products  Solidion Technology

Very weak diversification

The 3 months correlation between Marine and Solidion is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Marine Products and Solidion Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Solidion Technology 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 Solidion Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Solidion Technology has no effect on the direction of Marine Products i.e., Marine Products and Solidion Technology go up and down completely randomly.

Pair Corralation between Marine Products and Solidion Technology

Considering the 90-day investment horizon Marine Products is expected to generate 0.15 times more return on investment than Solidion Technology. However, Marine Products is 6.58 times less risky than Solidion Technology. It trades about -0.05 of its potential returns per unit of risk. Solidion Technology is currently generating about -0.05 per unit of risk. If you would invest  912.00  in Marine Products on December 19, 2024 and sell it today you would lose (68.00) from holding Marine Products or give up 7.46% of portfolio value over 90 days.

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

Marine Products  vs.  Solidion Technology

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 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.

Solidion Technology

Risk-Adjusted Performance

Very Weak

Over the last 90 days Solidion Technology has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unfluctuating performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in April 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with Marine Products and Solidion Technology

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

The idea behind Marine Products and Solidion Technology 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 Stocks Directory module to find actively traded stocks across global markets.