Correlation Between Park Electrochemical and MARTIN
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By analyzing existing cross correlation between Park Electrochemical and MARTIN MARIETTA MATLS, you can compare the effects of market volatilities on Park Electrochemical and MARTIN 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 Park Electrochemical with a short position of MARTIN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Park Electrochemical and MARTIN.
Diversification Opportunities for Park Electrochemical and MARTIN
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Park and MARTIN is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Park Electrochemical and MARTIN MARIETTA MATLS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MARTIN MARIETTA MATLS and Park Electrochemical 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 Park Electrochemical are associated (or correlated) with MARTIN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MARTIN MARIETTA MATLS has no effect on the direction of Park Electrochemical i.e., Park Electrochemical and MARTIN go up and down completely randomly.
Pair Corralation between Park Electrochemical and MARTIN
Considering the 90-day investment horizon Park Electrochemical is expected to generate 1.13 times less return on investment than MARTIN. In addition to that, Park Electrochemical is 4.55 times more volatile than MARTIN MARIETTA MATLS. It trades about 0.01 of its total potential returns per unit of risk. MARTIN MARIETTA MATLS is currently generating about 0.04 per unit of volatility. If you would invest 9,143 in MARTIN MARIETTA MATLS on September 24, 2024 and sell it today you would earn a total of 435.00 from holding MARTIN MARIETTA MATLS or generate 4.76% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 98.63% |
Values | Daily Returns |
Park Electrochemical vs. MARTIN MARIETTA MATLS
Performance |
Timeline |
Park Electrochemical |
MARTIN MARIETTA MATLS |
Park Electrochemical and MARTIN Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Park Electrochemical and MARTIN
The main advantage of trading using opposite Park Electrochemical and MARTIN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Park Electrochemical position performs unexpectedly, MARTIN 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 MARTIN will offset losses from the drop in MARTIN's long position.Park Electrochemical vs. GE Aerospace | Park Electrochemical vs. Planet Labs PBC | Park Electrochemical vs. Draganfly | Park Electrochemical vs. Boeing Co |
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Check out your portfolio center.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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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