Correlation Between Surrozen and Marcus

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

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

Diversification Opportunities for Surrozen and Marcus

-0.13

Correlation Coefficient

Surrozen  Marcus

Good diversification

The 3 months correlation between Surrozen and Marcus is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Surrozen and Marcus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marcus and Surrozen 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 Surrozen are associated (or correlated) with Marcus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marcus has no effect on the direction of Surrozen i.e., Surrozen and Marcus go up and down completely randomly.

Pair Corralation between Surrozen and Marcus

Given the investment horizon of 90 days Surrozen is expected to generate 3.94 times more return on investment than Marcus. However, Surrozen is 3.94 times more volatile than Marcus. It trades about 0.13 of its potential returns per unit of risk. Marcus is currently generating about -0.03 per unit of risk. If you would invest  930.00  in Surrozen on September 22, 2024 and sell it today you would earn a total of  127.00  from holding Surrozen or generate 13.66% return on investment over 90 days.

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

Surrozen  vs.  Marcus

Surrozen

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Surrozen are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of very uncertain basic indicators, Surrozen displayed solid returns over the last few months and may actually be approaching a breakup point.

Marcus

Risk-Adjusted Performance

20 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Marcus are ranked lower than 20 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain fundamental indicators, Marcus unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Surrozen and Marcus

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

The idea behind Surrozen and Marcus 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.

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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.