Correlation Between Ackroo and Marin Software

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

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

Diversification Opportunities for Ackroo and Marin Software

-0.03

Correlation Coefficient

Ackroo  Marin Software

Good diversification

The 3 months correlation between Ackroo and Marin is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Ackroo Inc and Marin Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marin Software and Ackroo 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 Ackroo Inc are associated (or correlated) with Marin Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marin Software has no effect on the direction of Ackroo i.e., Ackroo and Marin Software go up and down completely randomly.

Pair Corralation between Ackroo and Marin Software

Assuming the 90 days horizon Ackroo is expected to generate 1.17 times less return on investment than Marin Software. In addition to that, Ackroo is 1.02 times more volatile than Marin Software. It trades about 0.1 of its total potential returns per unit of risk. Marin Software is currently generating about 0.12 per unit of volatility. If you would invest  213.00  in Marin Software on August 30, 2024 and sell it today you would earn a total of  15.00  from holding Marin Software or generate 7.04% return on investment over 90 days.

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

Ackroo Inc  vs.  Marin Software

Ackroo Inc

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Ackroo Inc are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable technical and fundamental indicators, Ackroo is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

Marin Software

Risk-Adjusted Performance

0 of 100

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 latest unfluctuating performance, the Stock's forward indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Pair Trading with Ackroo and Marin Software

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

The idea behind Ackroo Inc and Marin Software 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.