Correlation Between Marchex and Scisparc

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

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

Diversification Opportunities for Marchex and Scisparc

0.34

Correlation Coefficient

Marchex  Scisparc

Weak diversification

The 3 months correlation between Marchex and Scisparc is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Marchex and Scisparc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Scisparc and Marchex 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 Marchex are associated (or correlated) with Scisparc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Scisparc has no effect on the direction of Marchex i.e., Marchex and Scisparc go up and down completely randomly.

Pair Corralation between Marchex and Scisparc

Given the investment horizon of 90 days Marchex is expected to generate 0.84 times more return on investment than Scisparc. However, Marchex is 1.2 times less risky than Scisparc. It trades about 0.1 of its potential returns per unit of risk. Scisparc is currently generating about -0.06 per unit of risk. If you would invest  171.00  in Marchex on May 15, 2025 and sell it today you would earn a total of  32.00  from holding Marchex or generate 18.71% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Marchex  vs.  Scisparc

Marchex

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Marchex are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak technical indicators, Marchex showed solid returns over the last few months and may actually be approaching a breakup point.

Scisparc

Risk-Adjusted Performance

Weakest

Over the last 90 days Scisparc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in September 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with Marchex and Scisparc

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

The idea behind Marchex and Scisparc 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.