Correlation Between Vir Biotechnology and Marathon Group

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

Diversification Opportunities for Vir Biotechnology and Marathon Group

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Vir and Marathon is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Vir Biotechnology 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 Vir Biotechnology 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 Vir Biotechnology 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 Vir Biotechnology i.e., Vir Biotechnology and Marathon Group go up and down completely randomly.

Pair Corralation between Vir Biotechnology and Marathon Group

If you would invest  524.00  in Vir Biotechnology on September 9, 2025 and sell it today you would earn a total of  138.00  from holding Vir Biotechnology or generate 26.34% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy98.46%
ValuesDaily Returns

Vir Biotechnology  vs.  Marathon Group Corp

 Performance 
       Timeline  
Vir Biotechnology 

Risk-Adjusted Performance

Fair

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Vir Biotechnology are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Even with relatively inconsistent forward indicators, Vir Biotechnology reported solid returns over the last few months and may actually be approaching a breakup point.
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.

Vir Biotechnology and Marathon Group Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Vir Biotechnology and Marathon Group

The main advantage of trading using opposite Vir Biotechnology and Marathon Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vir Biotechnology 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.
The idea behind Vir Biotechnology and Marathon Group Corp 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.

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