Correlation Between Marathon Digital and Meta Platforms
Can any of the company-specific risk be diversified away by investing in both Marathon Digital and Meta Platforms 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 Meta Platforms 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 Meta Platforms, you can compare the effects of market volatilities on Marathon Digital and Meta Platforms 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 Meta Platforms. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marathon Digital and Meta Platforms.
Diversification Opportunities for Marathon Digital and Meta Platforms
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Marathon and Meta is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Marathon Digital Holdings and Meta Platforms in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Meta Platforms 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 Meta Platforms. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Meta Platforms has no effect on the direction of Marathon Digital i.e., Marathon Digital and Meta Platforms go up and down completely randomly.
Pair Corralation between Marathon Digital and Meta Platforms
If you would invest 16,949 in Meta Platforms on February 12, 2024 and sell it today you would earn a total of 0.00 from holding Meta Platforms or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 1.56% |
Values | Daily Returns |
Marathon Digital Holdings vs. Meta Platforms
Performance |
Timeline |
Marathon Digital Holdings |
Meta Platforms |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Marathon Digital and Meta Platforms Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Marathon Digital and Meta Platforms
The main advantage of trading using opposite Marathon Digital and Meta Platforms positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marathon Digital position performs unexpectedly, Meta Platforms 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 Meta Platforms will offset losses from the drop in Meta Platforms' long position.Marathon Digital vs. Magic Empire Global | Marathon Digital vs. Zhong Yang Financial | Marathon Digital vs. SAITECH Global | Marathon Digital vs. Netcapital |
Meta Platforms vs. Meta Platforms | Meta Platforms vs. Alphabet Inc Class A | Meta Platforms vs. Twilio Inc | Meta Platforms vs. Snap Inc |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
Commodity Directory Find actively traded commodities issued by global exchanges | |
Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
Share Portfolio Track or share privately all of your investments from the convenience of any device | |
Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |