Correlation Between Martin Marietta and Beowulf Mining
Can any of the company-specific risk be diversified away by investing in both Martin Marietta and Beowulf Mining 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 Martin Marietta and Beowulf Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Martin Marietta Materials and Beowulf Mining, you can compare the effects of market volatilities on Martin Marietta and Beowulf Mining 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 Martin Marietta with a short position of Beowulf Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Martin Marietta and Beowulf Mining.
Diversification Opportunities for Martin Marietta and Beowulf Mining
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Martin and Beowulf is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Martin Marietta Materials and Beowulf Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beowulf Mining and Martin Marietta 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 Martin Marietta Materials are associated (or correlated) with Beowulf Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beowulf Mining has no effect on the direction of Martin Marietta i.e., Martin Marietta and Beowulf Mining go up and down completely randomly.
Pair Corralation between Martin Marietta and Beowulf Mining
Assuming the 90 days trading horizon Martin Marietta is expected to generate 1.2 times less return on investment than Beowulf Mining. But when comparing it to its historical volatility, Martin Marietta Materials is 2.23 times less risky than Beowulf Mining. It trades about 0.05 of its potential returns per unit of risk. Beowulf Mining is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,025 in Beowulf Mining on September 9, 2025 and sell it today you would earn a total of 25.00 from holding Beowulf Mining or generate 2.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Martin Marietta Materials vs. Beowulf Mining
Performance |
| Timeline |
| Martin Marietta Materials |
| Beowulf Mining |
Martin Marietta and Beowulf Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Martin Marietta and Beowulf Mining
The main advantage of trading using opposite Martin Marietta and Beowulf Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Martin Marietta position performs unexpectedly, Beowulf Mining 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 Beowulf Mining will offset losses from the drop in Beowulf Mining's long position.| Martin Marietta vs. Abeona Therapeutics | Martin Marietta vs. Roadside Real Estate | Martin Marietta vs. Power Metal Resources | Martin Marietta vs. Tamburi Investment Partners |
| Beowulf Mining vs. Givaudan SA | Beowulf Mining vs. Antofagasta PLC | Beowulf Mining vs. Clariant AG | Beowulf Mining vs. EVRAZ plc |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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