Correlation Between Marathon Group and ViewcastCom

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

Diversification Opportunities for Marathon Group and ViewcastCom

1.0
  Correlation Coefficient

No risk reduction

The 3 months correlation between Marathon and ViewcastCom is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding Marathon Group Corp and ViewcastCom in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ViewcastCom and Marathon Group 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 Marathon Group Corp are associated (or correlated) with ViewcastCom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ViewcastCom has no effect on the direction of Marathon Group i.e., Marathon Group and ViewcastCom go up and down completely randomly.

Pair Corralation between Marathon Group and ViewcastCom

If you would invest  0.02  in ViewcastCom on August 24, 2025 and sell it today you would earn a total of  0.00  from holding ViewcastCom or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Strong
Accuracy98.46%
ValuesDaily Returns

Marathon Group Corp  vs.  ViewcastCom

 Performance 
       Timeline  
Marathon Group Corp 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Marathon Group Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Marathon Group is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.
ViewcastCom 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days ViewcastCom has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, ViewcastCom is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Marathon Group and ViewcastCom Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Marathon Group and ViewcastCom

The main advantage of trading using opposite Marathon Group and ViewcastCom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marathon Group position performs unexpectedly, ViewcastCom 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 ViewcastCom will offset losses from the drop in ViewcastCom's long position.
The idea behind Marathon Group Corp and ViewcastCom 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.

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