Correlation Between Marker Therapeutics and Conflux Network

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

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

Diversification Opportunities for Marker Therapeutics and Conflux Network

0.35

Correlation Coefficient

Marker Therapeutics  Conflux Network

Weak diversification

The 3 months correlation between Marker and Conflux is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Marker Therapeutics and Conflux Network in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Conflux Network and Marker Therapeutics 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 Marker Therapeutics are associated (or correlated) with Conflux Network. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Conflux Network has no effect on the direction of Marker Therapeutics i.e., Marker Therapeutics and Conflux Network go up and down completely randomly.

Pair Corralation between Marker Therapeutics and Conflux Network

Given the investment horizon of 90 days Marker Therapeutics is expected to generate 0.47 times more return on investment than Conflux Network. However, Marker Therapeutics is 2.13 times less risky than Conflux Network. It trades about -0.14 of its potential returns per unit of risk. Conflux Network is currently generating about -0.24 per unit of risk. If you would invest  460.00  in Marker Therapeutics on February 1, 2024 and sell it today you would lose (55.00) from holding Marker Therapeutics or give up 11.96% of portfolio value over 90 days.

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

Marker Therapeutics  vs.  Conflux Network

Marker Therapeutics

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Marker Therapeutics has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest unfluctuating performance, the Stock's forward-looking signals remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

Conflux Network

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Conflux Network are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, Conflux Network exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Marker Therapeutics and Conflux Network

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

The idea behind Marker Therapeutics and Conflux Network 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 Transaction History module to view history of all your transactions and understand their impact on performance.