Correlation Between Marsico Focus and Lyrical Us

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

Diversification Opportunities for Marsico Focus and Lyrical Us

0.39
  Correlation Coefficient

Weak diversification

The 3 months correlation between Marsico and Lyrical is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Marsico Focus Fund and Lyrical Value Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lyrical Value Equity and Marsico Focus 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 Marsico Focus Fund are associated (or correlated) with Lyrical Us. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lyrical Value Equity has no effect on the direction of Marsico Focus i.e., Marsico Focus and Lyrical Us go up and down completely randomly.

Pair Corralation between Marsico Focus and Lyrical Us

Assuming the 90 days horizon Marsico Focus Fund is expected to under-perform the Lyrical Us. In addition to that, Marsico Focus is 1.18 times more volatile than Lyrical Value Equity. It trades about -0.14 of its total potential returns per unit of risk. Lyrical Value Equity is currently generating about -0.12 per unit of volatility. If you would invest  2,962  in Lyrical Value Equity on August 20, 2025 and sell it today you would lose (81.00) from holding Lyrical Value Equity or give up 2.73% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy95.45%
ValuesDaily Returns

Marsico Focus Fund  vs.  Lyrical Value Equity

 Performance 
       Timeline  
Marsico Focus 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Marsico Focus Fund has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong fundamental indicators, Marsico Focus is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
Lyrical Value Equity 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Lyrical Value Equity has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong fundamental drivers, Lyrical Us is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Marsico Focus and Lyrical Us Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Marsico Focus and Lyrical Us

The main advantage of trading using opposite Marsico Focus and Lyrical Us positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marsico Focus position performs unexpectedly, Lyrical Us 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 Lyrical Us will offset losses from the drop in Lyrical Us' long position.
The idea behind Marsico Focus Fund and Lyrical Value Equity 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.

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