Correlation Between Marathon Oil and STADION TRILOGY

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

Diversification Opportunities for Marathon Oil and STADION TRILOGY

0.01
  Correlation Coefficient

Significant diversification

The 3 months correlation between Marathon and STADION is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Marathon Oil and STADION TRILOGY ALTERNATIVE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STADION TRILOGY ALTE and Marathon Oil 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 Oil are associated (or correlated) with STADION TRILOGY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STADION TRILOGY ALTE has no effect on the direction of Marathon Oil i.e., Marathon Oil and STADION TRILOGY go up and down completely randomly.

Pair Corralation between Marathon Oil and STADION TRILOGY

Considering the 90-day investment horizon Marathon Oil is expected to generate 9.8 times more return on investment than STADION TRILOGY. However, Marathon Oil is 9.8 times more volatile than STADION TRILOGY ALTERNATIVE. It trades about 0.1 of its potential returns per unit of risk. STADION TRILOGY ALTERNATIVE is currently generating about -0.04 per unit of risk. If you would invest  655.00  in Marathon Oil on September 9, 2022 and sell it today you would earn a total of  2,086  from holding Marathon Oil or generate 318.47% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Marathon Oil  vs.  STADION TRILOGY ALTERNATIVE

 Performance (%) 
       Timeline  
Marathon Oil 
Marathon Performance
2 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Marathon Oil are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite quite weak basic indicators, Marathon Oil may actually be approaching a critical reversion point that can send shares even higher in January 2023.

Marathon Price Channel

STADION TRILOGY ALTE 
STADION Performance
0 of 100
Over the last 90 days STADION TRILOGY ALTERNATIVE has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong fundamental indicators, STADION TRILOGY is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

STADION Price Channel

Marathon Oil and STADION TRILOGY Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Marathon Oil and STADION TRILOGY

The main advantage of trading using opposite Marathon Oil and STADION TRILOGY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marathon Oil position performs unexpectedly, STADION TRILOGY 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 STADION TRILOGY will offset losses from the drop in STADION TRILOGY's long position.
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The idea behind Marathon Oil and STADION TRILOGY ALTERNATIVE 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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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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.

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