Correlation Between Marriott International and Intergroup

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Marriott International and Intergroup 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 Marriott International and Intergroup into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Marriott International and The Intergroup, you can compare the effects of market volatilities on Marriott International and Intergroup 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 Marriott International with a short position of Intergroup. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marriott International and Intergroup.

Diversification Opportunities for Marriott International and Intergroup

0.56
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Marriott and Intergroup is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Marriott International and The Intergroup in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intergroup and Marriott International 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 Marriott International are associated (or correlated) with Intergroup. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intergroup has no effect on the direction of Marriott International i.e., Marriott International and Intergroup go up and down completely randomly.

Pair Corralation between Marriott International and Intergroup

Considering the 90-day investment horizon Marriott International is expected to generate 0.16 times more return on investment than Intergroup. However, Marriott International is 6.07 times less risky than Intergroup. It trades about 0.07 of its potential returns per unit of risk. The Intergroup is currently generating about -0.02 per unit of risk. If you would invest  24,899  in Marriott International on December 30, 2023 and sell it today you would earn a total of  332.00  from holding Marriott International or generate 1.33% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Marriott International  vs.  The Intergroup

 Performance 
       Timeline  
Marriott International 

Risk-Adjusted Performance

13 of 100

 
Low
 
High
Good
Compared to the overall equity markets, risk-adjusted returns on investments in Marriott International are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Even with relatively inconsistent basic indicators, Marriott International reported solid returns over the last few months and may actually be approaching a breakup point.
Intergroup 

Risk-Adjusted Performance

5 of 100

 
Low
 
High
Modest
Compared to the overall equity markets, risk-adjusted returns on investments in The Intergroup are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly inconsistent basic indicators, Intergroup reported solid returns over the last few months and may actually be approaching a breakup point.

Marriott International and Intergroup Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Marriott International and Intergroup

The main advantage of trading using opposite Marriott International and Intergroup positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marriott International position performs unexpectedly, Intergroup 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 Intergroup will offset losses from the drop in Intergroup's long position.
The idea behind Marriott International and The Intergroup 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.
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .

Other Complementary Tools

My Watchlist Analysis
Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like
Insider Screener
Find insiders across different sectors to evaluate their impact on performance
ETFs
Find actively traded Exchange Traded Funds (ETF) from around the world
Portfolio Anywhere
Track or share privately all of your investments from the convenience of any device
Portfolio Optimization
Compute new portfolio that will generate highest expected return given your specified tolerance for risk
Top Crypto Exchanges
Search and analyze digital assets across top global cryptocurrency exchanges
Price Ceiling Movement
Calculate and plot Price Ceiling Movement for different equity instruments
Equity Analysis
Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities
Idea Optimizer
Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio
Theme Ratings
Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance