Correlation Between Agios Pharm and Martin Marietta
Can any of the company-specific risk be diversified away by investing in both Agios Pharm and Martin Marietta 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 Agios Pharm and Martin Marietta into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Agios Pharm and Martin Marietta Materials, you can compare the effects of market volatilities on Agios Pharm and Martin Marietta 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 Agios Pharm with a short position of Martin Marietta. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agios Pharm and Martin Marietta.
Diversification Opportunities for Agios Pharm and Martin Marietta
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Agios and Martin is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Agios Pharm and Martin Marietta Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Martin Marietta Materials and Agios Pharm 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 Agios Pharm are associated (or correlated) with Martin Marietta. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Martin Marietta Materials has no effect on the direction of Agios Pharm i.e., Agios Pharm and Martin Marietta go up and down completely randomly.
Pair Corralation between Agios Pharm and Martin Marietta
Given the investment horizon of 90 days Agios Pharm is expected to under-perform the Martin Marietta. In addition to that, Agios Pharm is 6.08 times more volatile than Martin Marietta Materials. It trades about -0.01 of its total potential returns per unit of risk. Martin Marietta Materials is currently generating about 0.02 per unit of volatility. If you would invest 61,638 in Martin Marietta Materials on August 31, 2025 and sell it today you would earn a total of 686.00 from holding Martin Marietta Materials or generate 1.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agios Pharm vs. Martin Marietta Materials
Performance |
| Timeline |
| Agios Pharm |
| Martin Marietta Materials |
Agios Pharm and Martin Marietta Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agios Pharm and Martin Marietta
The main advantage of trading using opposite Agios Pharm and Martin Marietta positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agios Pharm position performs unexpectedly, Martin Marietta 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 Martin Marietta will offset losses from the drop in Martin Marietta's long position.| Agios Pharm vs. Sun Art Retail | Agios Pharm vs. H2O Retailing | Agios Pharm vs. Zijin Mining Group | Agios Pharm vs. PARKSON Retail Group |
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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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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