Correlation Between Boston Beer and Marti Technologies

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

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

Diversification Opportunities for Boston Beer and Marti Technologies

-0.1

Correlation Coefficient

Boston Beer  Marti Technologies

Good diversification

The 3 months correlation between Boston and Marti is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Boston Beer and Marti Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marti Technologies and Boston Beer 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 Boston Beer are associated (or correlated) with Marti Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marti Technologies has no effect on the direction of Boston Beer i.e., Boston Beer and Marti Technologies go up and down completely randomly.

Pair Corralation between Boston Beer and Marti Technologies

Considering the 90-day investment horizon Boston Beer is expected to under-perform the Marti Technologies. But the stock apears to be less risky and, when comparing its historical volatility, Boston Beer is 2.12 times less risky than Marti Technologies. The stock trades about -0.19 of its potential returns per unit of risk. The Marti Technologies is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest  336.00  in Marti Technologies on December 24, 2024 and sell it today you would lose (49.00) from holding Marti Technologies or give up 14.58% of portfolio value over 90 days.

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

Boston Beer  vs.  Marti Technologies

Boston Beer

Risk-Adjusted Performance

Very Weak

Over the last 90 days Boston Beer has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's basic 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.

Marti Technologies

Risk-Adjusted Performance

Very Weak

Over the last 90 days Marti Technologies 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 stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with Boston Beer and Marti Technologies

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

The idea behind Boston Beer and Marti Technologies 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .