Correlation Between News Corp and Marriott International

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

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

Diversification Opportunities for News Corp and Marriott International

0.8

Correlation Coefficient

News Corp  Marriott International

Very poor diversification

The 3 months correlation between News and Marriott is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding News Corp A and Marriott International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marriott International and News Corp 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 News Corp A are associated (or correlated) with Marriott International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marriott International has no effect on the direction of News Corp i.e., News Corp and Marriott International go up and down completely randomly.

Pair Corralation between News Corp and Marriott International

Given the investment horizon of 90 days News Corp A is expected to generate 0.61 times more return on investment than Marriott International. However, News Corp A is 1.63 times less risky than Marriott International. It trades about 0.09 of its potential returns per unit of risk. Marriott International is currently generating about 0.02 per unit of risk. If you would invest  2,818  in News Corp A on May 7, 2025 and sell it today you would earn a total of  133.00  from holding News Corp A or generate 4.72% return on investment over 90 days.

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

News Corp A  vs.  Marriott International

News Corp A

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in News Corp A are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, News Corp is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Marriott International

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Marriott International are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable basic indicators, Marriott International is not utilizing all of its potentials. The recent stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with News Corp and Marriott International

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

The idea behind News Corp A and Marriott International 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.