Correlation Between Marin Software and Society Pass

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

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

Diversification Opportunities for Marin Software and Society Pass

0.18

Correlation Coefficient

Marin Software  Society Pass

Average diversification

The 3 months correlation between Marin and Society is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Marin Software and Society Pass in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Society Pass and Marin Software 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 Marin Software are associated (or correlated) with Society Pass. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Society Pass has no effect on the direction of Marin Software i.e., Marin Software and Society Pass go up and down completely randomly.

Pair Corralation between Marin Software and Society Pass

Given the investment horizon of 90 days Marin Software is expected to under-perform the Society Pass. But the stock apears to be less risky and, when comparing its historical volatility, Marin Software is 6.26 times less risky than Society Pass. The stock trades about -0.15 of its potential returns per unit of risk. The Society Pass is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  92.00  in Society Pass on December 29, 2024 and sell it today you would earn a total of  3.00  from holding Society Pass or generate 3.26% return on investment over 90 days.

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

Marin Software  vs.  Society Pass

Marin Software

Risk-Adjusted Performance

Very Weak

Over the last 90 days Marin Software has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's forward indicators remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Society Pass

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Society Pass are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain basic indicators, Society Pass sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Marin Software and Society Pass

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

The idea behind Marin Software and Society Pass 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.