Correlation Between Paysafe and MARATHON

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

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

Diversification Opportunities for Paysafe and MARATHON

0.06

Correlation Coefficient

Paysafe  MARATHON

Significant diversification

The 3 months correlation between Paysafe and MARATHON is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Paysafe and MARATHON PETE P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MARATHON PETE P and Paysafe 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 Paysafe are associated (or correlated) with MARATHON. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MARATHON PETE P has no effect on the direction of Paysafe i.e., Paysafe and MARATHON go up and down completely randomly.

Pair Corralation between Paysafe and MARATHON

Given the investment horizon of 90 days Paysafe is expected to under-perform the MARATHON. In addition to that, Paysafe is 1.4 times more volatile than MARATHON PETE P. It trades about -0.31 of its total potential returns per unit of risk. MARATHON PETE P is currently generating about -0.13 per unit of volatility. If you would invest  8,717  in MARATHON PETE P on October 10, 2024 and sell it today you would lose (277.00) from holding MARATHON PETE P or give up 3.18% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	95.0%
Values	Daily Returns

Paysafe  vs.  MARATHON PETE P

Paysafe

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Paysafe has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's technical and fundamental indicators remain rather sound which may send shares a bit higher in February 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

MARATHON PETE P

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Paysafe and MARATHON

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

The idea behind Paysafe and MARATHON PETE P 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.