Correlation Between Rocket City and Marathon Group
Can any of the company-specific risk be diversified away by investing in both Rocket City and Marathon Group 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 Rocket City and Marathon Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rocket City Enterprises and Marathon Group Corp, you can compare the effects of market volatilities on Rocket City and Marathon Group 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 Rocket City with a short position of Marathon Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rocket City and Marathon Group.
Diversification Opportunities for Rocket City and Marathon Group
1.0 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Rocket and Marathon is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding Rocket City Enterprises and Marathon Group Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marathon Group Corp and Rocket City 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 Rocket City Enterprises are associated (or correlated) with Marathon Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marathon Group Corp has no effect on the direction of Rocket City i.e., Rocket City and Marathon Group go up and down completely randomly.
Pair Corralation between Rocket City and Marathon Group
If you would invest 0.01 in Marathon Group Corp on September 3, 2025 and sell it today you would earn a total of 0.00 from holding Marathon Group Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rocket City Enterprises vs. Marathon Group Corp
Performance |
| Timeline |
| Rocket City Enterprises |
| Marathon Group Corp |
Rocket City and Marathon Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rocket City and Marathon Group
The main advantage of trading using opposite Rocket City and Marathon Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rocket City position performs unexpectedly, Marathon Group 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 Marathon Group will offset losses from the drop in Marathon Group's long position.| Rocket City vs. Chesapeake Utilities | Rocket City vs. Avecho Biotechnology Limited | Rocket City vs. Vir Biotechnology | Rocket City vs. Newron Sport |
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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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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