Correlation Between Beasley Broadcast and Marcus

Can any of the company-specific risk be diversified away by investing in both Beasley Broadcast and Marcus 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 Beasley Broadcast and Marcus into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Beasley Broadcast Group and Marcus, you can compare the effects of market volatilities on Beasley Broadcast and Marcus 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 Beasley Broadcast with a short position of Marcus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beasley Broadcast and Marcus.

Diversification Opportunities for Beasley Broadcast and Marcus

0.15

Correlation Coefficient

Beasley Broadcast  Marcus

Average diversification

The 3 months correlation between Beasley and Marcus is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Beasley Broadcast Group and Marcus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marcus and Beasley Broadcast 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 Beasley Broadcast Group are associated (or correlated) with Marcus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marcus has no effect on the direction of Beasley Broadcast i.e., Beasley Broadcast and Marcus go up and down completely randomly.

Pair Corralation between Beasley Broadcast and Marcus

Given the investment horizon of 90 days Beasley Broadcast Group is expected to under-perform the Marcus. In addition to that, Beasley Broadcast is 3.28 times more volatile than Marcus. It trades about -0.2 of its total potential returns per unit of risk. Marcus is currently generating about -0.31 per unit of volatility. If you would invest  1,439  in Marcus on January 20, 2024 and sell it today you would lose (118.00) from holding Marcus or give up 8.2% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Beasley Broadcast Group  vs.  Marcus

Beasley Broadcast

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Beasley Broadcast Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's technical and fundamental indicators remain fairly strong which may send shares a bit higher in May 2024. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Marcus

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Marcus has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable fundamental indicators, Marcus is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Beasley Broadcast and Marcus

The main advantage of trading using opposite Beasley Broadcast and Marcus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beasley Broadcast position performs unexpectedly, Marcus 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 Marcus will offset losses from the drop in Marcus' long position.

The idea behind Beasley Broadcast Group and Marcus 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.