Correlation Between MOVIE GAMES and Macerich

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

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

Diversification Opportunities for MOVIE GAMES and Macerich

-0.75

Correlation Coefficient

MOVIE GAMES  Macerich

Pay attention - limited upside

The 3 months correlation between MOVIE and Macerich is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding MOVIE GAMES SA and The Macerich in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Macerich and MOVIE GAMES 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 MOVIE GAMES SA are associated (or correlated) with Macerich. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Macerich has no effect on the direction of MOVIE GAMES i.e., MOVIE GAMES and Macerich go up and down completely randomly.

Pair Corralation between MOVIE GAMES and Macerich

Assuming the 90 days horizon MOVIE GAMES SA is expected to under-perform the Macerich. In addition to that, MOVIE GAMES is 1.53 times more volatile than The Macerich. It trades about -0.04 of its total potential returns per unit of risk. The Macerich is currently generating about 0.15 per unit of volatility. If you would invest  1,591  in The Macerich on October 10, 2024 and sell it today you would earn a total of  322.00  from holding The Macerich or generate 20.24% return on investment over 90 days.

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

MOVIE GAMES SA  vs.  The Macerich

MOVIE GAMES SA

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days MOVIE GAMES SA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Macerich

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in The Macerich are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Macerich reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with MOVIE GAMES and Macerich

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

The idea behind MOVIE GAMES SA and The Macerich 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.