Correlation Between Marathon Digital and Eros STX
Can any of the company-specific risk be diversified away by investing in both Marathon Digital and Eros STX 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 Digital and Eros STX into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Marathon Digital Holdings and Eros STX Global, you can compare the effects of market volatilities on Marathon Digital and Eros STX 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 Digital with a short position of Eros STX. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marathon Digital and Eros STX.
Diversification Opportunities for Marathon Digital and Eros STX
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Marathon and Eros is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Marathon Digital Holdings and Eros STX Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eros STX Global and Marathon Digital 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 Digital Holdings are associated (or correlated) with Eros STX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eros STX Global has no effect on the direction of Marathon Digital i.e., Marathon Digital and Eros STX go up and down completely randomly.
Pair Corralation between Marathon Digital and Eros STX
If you would invest (100.00) in Eros STX Global on January 25, 2024 and sell it today you would earn a total of 100.00 from holding Eros STX Global or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Marathon Digital Holdings vs. Eros STX Global
Performance |
| Timeline |
| Marathon Digital Holdings |
| Eros STX Global |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Marathon Digital and Eros STX Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marathon Digital and Eros STX
The main advantage of trading using opposite Marathon Digital and Eros STX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marathon Digital position performs unexpectedly, Eros STX 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 Eros STX will offset losses from the drop in Eros STX's long position.| Marathon Digital vs. Hut 8 Corp | Marathon Digital vs. HIVE Blockchain Technologies | Marathon Digital vs. Terawulf | Marathon Digital vs. Bitfarms |
| Eros STX vs. Analog Devices | Eros STX vs. KLA Tencor | Eros STX vs. National CineMedia | Eros STX vs. Vishay Intertechnology |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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