Correlation Between Martin Marietta and GX AI

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

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

Diversification Opportunities for Martin Marietta and GX AI

0.46

Correlation Coefficient

Martin Marietta  GX AI

Very weak diversification

The 3 months correlation between Martin and BAIQ39 is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Martin Marietta Materials, and GX AI TECH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GX AI TECH and Martin Marietta 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 Martin Marietta Materials, are associated (or correlated) with GX AI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GX AI TECH has no effect on the direction of Martin Marietta i.e., Martin Marietta and GX AI go up and down completely randomly.

Pair Corralation between Martin Marietta and GX AI

Assuming the 90 days trading horizon Martin Marietta is expected to generate 4.65 times less return on investment than GX AI. In addition to that, Martin Marietta is 1.1 times more volatile than GX AI TECH. It trades about 0.04 of its total potential returns per unit of risk. GX AI TECH is currently generating about 0.22 per unit of volatility. If you would invest  6,863  in GX AI TECH on April 24, 2025 and sell it today you would earn a total of  1,360  from holding GX AI TECH or generate 19.82% return on investment over 90 days.

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

Martin Marietta Materials,  vs.  GX AI TECH

Martin Marietta Mate

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Martin Marietta Materials, are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong essential indicators, Martin Marietta is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

GX AI TECH

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in GX AI TECH are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak forward indicators, GX AI sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Martin Marietta and GX AI

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

The idea behind Martin Marietta Materials, and GX AI TECH 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.