Correlation Between Marcus and CNA Financial

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

Diversification Opportunities for Marcus and CNA Financial

-0.03
  Correlation Coefficient

Good diversification

The 3 months correlation between Marcus and CNA Financial is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Marcus and CNA Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CNA Financial and Marcus 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 Marcus are associated (or correlated) with CNA Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CNA Financial has no effect on the direction of Marcus i.e., Marcus and CNA Financial go up and down completely randomly.

Pair Corralation between Marcus and CNA Financial

Considering the 90-day investment horizon Marcus is expected to under-perform the CNA Financial. In addition to that, Marcus is 1.5 times more volatile than CNA Financial. It trades about 0.0 of its total potential returns per unit of risk. CNA Financial is currently generating about 0.02 per unit of volatility. If you would invest  3,979  in CNA Financial on October 29, 2022 and sell it today you would earn a total of  336.00  from holding CNA Financial or generate 8.44% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy99.8%
ValuesDaily Returns

Marcus  vs.  CNA Financial

 Performance (%) 
       Timeline  
Marcus 
Marcus Performance
0 of 100
Over the last 90 days Marcus has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable fundamental indicators, Marcus is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Marcus Price Channel

CNA Financial 
CNA Financial Performance
5 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in CNA Financial are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, CNA Financial is not utilizing all of its potentials. The new stock price disturbance, may contribute to short-term losses for the investors.

CNA Financial Price Channel

Marcus and CNA Financial Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Marcus and CNA Financial

The main advantage of trading using opposite Marcus and CNA Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marcus position performs unexpectedly, CNA Financial 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 CNA Financial will offset losses from the drop in CNA Financial's long position.
Marcus vs. AMC Networks
Marcus vs. Altice USA
Marcus vs. Beasley Broadcast Group
Marcus vs. Cable One
The idea behind Marcus and CNA Financial 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.
CNA Financial vs. JPMorgan Chase Co
CNA Financial vs. Bank Of Nova
CNA Financial vs. Banco Do Brasil
CNA Financial vs. ANZ Group Holdings
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.

Other Complementary Tools

Price Exposure Probability
Analyze equity upside and downside potential for a given time horizon across multiple markets
CEO Directory
Screen CEOs from public companies around the world
Global Correlations
Find global opportunities by holding instruments from different markets
Portfolio Comparator
Compare the composition, asset allocations and performance of any two portfolios in your account
Content Syndication
Quickly integrate customizable finance content to your own investment portal
Portfolio Anywhere
Track or share privately all of your investments from the convenience of any device
Portfolio Diagnostics
Use generated alerts and portfolio events aggregator to diagnose current holdings
Watchlist Optimization
Optimize watchlists to build efficient portfolio or rebalance existing positions based on mean-variance optimization algorithm
Idea Analyzer
Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas
Price Exposure Probability
Analyze equity upside and downside potential for a given time horizon across multiple markets
Share Portfolio
Track or share privately all of your investments from the convenience of any device