Correlation Between Marinemax and Envela Corp

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

Diversification Opportunities for Marinemax and Envela Corp

0.83
  Correlation Coefficient

Very poor diversification

The 3 months correlation between Marinemax and Envela is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Marinemax and Envela Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Envela Corp and Marinemax 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 Marinemax are associated (or correlated) with Envela Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Envela Corp has no effect on the direction of Marinemax i.e., Marinemax and Envela Corp go up and down completely randomly.

Pair Corralation between Marinemax and Envela Corp

Considering the 90-day investment horizon Marinemax is expected to generate 1.03 times less return on investment than Envela Corp. But when comparing it to its historical volatility, Marinemax is 1.02 times less risky than Envela Corp. It trades about 0.02 of its potential returns per unit of risk. Envela Corp is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  486.00  in Envela Corp on July 7, 2022 and sell it today you would earn a total of  37.00  from holding Envela Corp or generate 7.61% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthStrong
Accuracy100.0%
ValuesDaily Returns

Marinemax  vs.  Envela Corp

 Performance (%) 
       Timeline  
Marinemax 
Marinemax Performance
0 of 100
Over the last 90 days Marinemax has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain quite persistent which may send shares a bit higher in November 2022. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Marinemax Price Channel

Envela Corp 
Envela Performance
0 of 100
Over the last 90 days Envela Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's essential indicators remain somewhat strong which may send shares a bit higher in November 2022. The current disturbance may also be a sign of long term up-swing for the company investors.

Envela Price Channel

Marinemax and Envela Corp Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Marinemax and Envela Corp

The main advantage of trading using opposite Marinemax and Envela Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marinemax position performs unexpectedly, Envela Corp 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 Envela Corp will offset losses from the drop in Envela Corp's long position.
Marinemax vs. Best Buy Company
The idea behind Marinemax and Envela Corp 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.
Envela Corp vs. Amazon 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.

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