Correlation Between Able View and Marchex

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

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

Diversification Opportunities for Able View and Marchex

-0.81

Correlation Coefficient

Able View  Marchex

Pay attention - limited upside

The 3 months correlation between Able and Marchex is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Able View Global and Marchex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marchex and Able View 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 Able View Global are associated (or correlated) with Marchex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marchex has no effect on the direction of Able View i.e., Able View and Marchex go up and down completely randomly.

Pair Corralation between Able View and Marchex

Given the investment horizon of 90 days Able View Global is expected to under-perform the Marchex. In addition to that, Able View is 1.28 times more volatile than Marchex. It trades about -0.07 of its total potential returns per unit of risk. Marchex is currently generating about 0.18 per unit of volatility. If you would invest  131.00  in Marchex on May 6, 2025 and sell it today you would earn a total of  62.00  from holding Marchex or generate 47.33% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	98.41%
Values	Daily Returns

Able View Global  vs.  Marchex

Able View Global

Risk-Adjusted Performance

Very Weak

Over the last 90 days Able View Global has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's essential indicators remain fairly stable which may send shares a bit higher in September 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Marchex

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Marchex are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal technical indicators, Marchex showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Able View and Marchex

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

The idea behind Able View Global and Marchex 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.