Correlation Between Marinemax and Genuine Parts

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

Diversification Opportunities for Marinemax and Genuine Parts

0.06
  Correlation Coefficient

Significant diversification

The 3 months correlation between Marinemax and Genuine is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Marinemax and Genuine Parts in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genuine Parts 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 Genuine Parts. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genuine Parts has no effect on the direction of Marinemax i.e., Marinemax and Genuine Parts go up and down completely randomly.

Pair Corralation between Marinemax and Genuine Parts

Considering the 90-day investment horizon Marinemax is expected to under-perform the Genuine Parts. In addition to that, Marinemax is 1.48 times more volatile than Genuine Parts. It trades about -0.18 of its total potential returns per unit of risk. Genuine Parts is currently generating about 0.0 per unit of volatility. If you would invest  13,583  in Genuine Parts on March 30, 2022 and sell it today you would lose (38.00)  from holding Genuine Parts or give up 0.28% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Marinemax  vs.  Genuine Parts

 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 latest unfluctuating performance, the Stock's basic indicators remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

Marinemax Price Channel

Genuine Parts 
Genuine Performance
4 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Genuine Parts are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite somewhat conflicting basic indicators, Genuine Parts may actually be approaching a critical reversion point that can send shares even higher in July 2022.

Structure and Payout Changes

Forward Annual Dividend Yield
0.0261
Payout Ratio
0.47
Last Split Factor
3:2
Forward Annual Dividend Rate
3.58
Dividend Date
2022-07-01
Ex Dividend Date
2022-06-02
Last Split Date
1997-04-15

Genuine Price Channel

Marinemax and Genuine Parts Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with Marinemax and Genuine Parts

The main advantage of trading using opposite Marinemax and Genuine Parts positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marinemax position performs unexpectedly, Genuine Parts 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 Genuine Parts will offset losses from the drop in Genuine Parts' long position.
The idea behind Marinemax and Genuine Parts 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.
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.

Other Complementary Tools

Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios
Go
Bollinger Bands
Use Bollinger Bands indicator to analyze target price for a given investing horizon
Go
Equity Valuation
Check real value of public entities based on technical and fundamental data
Go
My Watchlist Analysis
Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like
Go
Global Correlations
Find global opportunities by holding instruments from different markets
Go
Headlines Timeline
Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity
Go