Correlation Analysis Between Marriott International and La Jolla

This module allows you to analyze existing cross correlation between Marriott International and La Jolla Pharmaceutical Company. You can compare the effects of market volatilities on Marriott International and La Jolla 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 La Jolla. See also your portfolio center. Please also check ongoing floating volatility patterns of Marriott International and La Jolla.
Horizon     30 Days    Login   to change
Symbolsvs
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Comparative Performance

Marriott International  
00

Risk-Adjusted Performance

Over the last 30 days Marriott International has generated negative risk-adjusted returns adding no value to investors with long positions. In defiance of relatively invariable forward-looking signals, Marriott International is not utilizing all of its potentials. The prevalent stock price agitation, may contribute to short term losses for the management.
La Jolla Pharmaceutical  
88

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in La Jolla Pharmaceutical Company are ranked lower than 8 (%) of all global equities and portfolios over the last 30 days. Despite somewhat fragile basic indicators, La Jolla sustained solid returns over the last few months and may actually be approaching a breakup point.

Marriott International and La Jolla Volatility Contrast

 Predicted Return Density 
      Returns 

Marriott International  vs.  La Jolla Pharmaceutical Compan

 Performance (%) 
      Timeline 

Pair Volatility

Considering 30-days investment horizon, Marriott International is expected to under-perform the La Jolla. But the stock apears to be less risky and, when comparing its historical volatility, Marriott International is 1.77 times less risky than La Jolla. The stock trades about -0.06 of its potential returns per unit of risk. The La Jolla Pharmaceutical Company is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  875.00  in La Jolla Pharmaceutical Company on July 21, 2019 and sell it today you would earn a total of  121.00  from holding La Jolla Pharmaceutical Company or generate 13.83% return on investment over 30 days.

Pair Corralation between Marriott International and La Jolla

0.01
Time Period2 Months [change]
DirectionPositive 
StrengthInsignificant
Accuracy97.67%
ValuesDaily Returns

Diversification Opportunities for Marriott International and La Jolla

Marriott International diversification synergy

Significant diversification

Overlapping area represents the amount of risk that can be diversified away by holding Marriott International and La Jolla Pharmaceutical Compan in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on La Jolla Pharmaceutical 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 La Jolla. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of La Jolla Pharmaceutical has no effect on the direction of Marriott International i.e. Marriott International and La Jolla go up and down completely randomly.
See also your portfolio center. Please also try Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.


 
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