Correlation Between Marin Software and EzFill Holdings

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

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

Diversification Opportunities for Marin Software and EzFill Holdings

0.58

Correlation Coefficient

Marin Software  EzFill Holdings

Very weak diversification

The 3 months correlation between Marin and EzFill is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Marin Software and EzFill Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EzFill Holdings and Marin Software 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 Marin Software are associated (or correlated) with EzFill Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EzFill Holdings has no effect on the direction of Marin Software i.e., Marin Software and EzFill Holdings go up and down completely randomly.

Pair Corralation between Marin Software and EzFill Holdings

Given the investment horizon of 90 days Marin Software is expected to generate 0.6 times more return on investment than EzFill Holdings. However, Marin Software is 1.66 times less risky than EzFill Holdings. It trades about -0.04 of its potential returns per unit of risk. EzFill Holdings is currently generating about -0.05 per unit of risk. If you would invest  249.00  in Marin Software on August 30, 2024 and sell it today you would lose (21.00) from holding Marin Software or give up 8.43% of portfolio value over 90 days.

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

Marin Software  vs.  EzFill Holdings

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.

EzFill Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days EzFill Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's technical and fundamental indicators remain quite persistent which may send shares a bit higher in December 2024. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with Marin Software and EzFill Holdings

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

The idea behind Marin Software and EzFill Holdings 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.