Correlation Between Capital Properties and Marcus Millichap

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

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

Diversification Opportunities for Capital Properties and Marcus Millichap

0.0

Correlation Coefficient

Capital Properties  Marcus Millichap

Pay attention - limited upside

The 3 months correlation between Capital and Marcus is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Capital Properties and Marcus Millichap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marcus Millichap and Capital Properties 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 Capital Properties are associated (or correlated) with Marcus Millichap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marcus Millichap has no effect on the direction of Capital Properties i.e., Capital Properties and Marcus Millichap go up and down completely randomly.

Pair Corralation between Capital Properties and Marcus Millichap

If you would invest  3,035  in Marcus Millichap on May 5, 2025 and sell it today you would earn a total of  34.00  from holding Marcus Millichap or generate 1.12% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Capital Properties  vs.  Marcus Millichap

Capital Properties

Risk-Adjusted Performance

Very Weak

Over the last 90 days Capital Properties has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Capital Properties is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Marcus Millichap

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Marcus Millichap are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong primary indicators, Marcus Millichap is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Capital Properties and Marcus Millichap

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

The idea behind Capital Properties and Marcus Millichap 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.