Correlation Between Marlowe Plc and FIT Hon

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Can any of the company-specific risk be diversified away by investing in both Marlowe Plc and FIT Hon 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 Marlowe Plc and FIT Hon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Marlowe plc and FIT Hon Teng, you can compare the effects of market volatilities on Marlowe Plc and FIT Hon 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 Marlowe Plc with a short position of FIT Hon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marlowe Plc and FIT Hon.

Diversification Opportunities for Marlowe Plc and FIT Hon

MarloweFITDiversified AwayMarloweFITDiversified Away100%
0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Marlowe and FIT is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Marlowe plc and FIT Hon Teng in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FIT Hon Teng and Marlowe Plc 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 Marlowe plc are associated (or correlated) with FIT Hon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FIT Hon Teng has no effect on the direction of Marlowe Plc i.e., Marlowe Plc and FIT Hon go up and down completely randomly.

Pair Corralation between Marlowe Plc and FIT Hon

If you would invest (100.00) in FIT Hon Teng on October 1, 2024 and sell it today you would earn a total of  100.00  from holding FIT Hon Teng or generate -100.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

Marlowe plc  vs.  FIT Hon Teng

 Performance 
JavaScript chart by amCharts 3.21.15OctNovDec -10-505
JavaScript chart by amCharts 3.21.15MRLWF FITGF
       Timeline  
Marlowe plc 

Risk-Adjusted Performance

0 of 100

 
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Strong
Very Weak
Over the last 90 days Marlowe plc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.
JavaScript chart by amCharts 3.21.15NovDecDec3.944.14.24.34.44.5
FIT Hon Teng 

Risk-Adjusted Performance

8 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in FIT Hon Teng are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak technical and fundamental indicators, FIT Hon reported solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15NovDecDec0.30.320.340.360.380.40.420.440.46

Marlowe Plc and FIT Hon Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-2.66-1.99-1.32-0.660.00.61.221.842.45 0.050.100.15
JavaScript chart by amCharts 3.21.15MRLWF FITGF
       Returns  

Pair Trading with Marlowe Plc and FIT Hon

The main advantage of trading using opposite Marlowe Plc and FIT Hon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marlowe Plc position performs unexpectedly, FIT Hon 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 FIT Hon will offset losses from the drop in FIT Hon's long position.
The idea behind Marlowe plc and FIT Hon Teng 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.

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