Correlation Between Duketon Mining and Macquarie Bank
Can any of the company-specific risk be diversified away by investing in both Duketon Mining and Macquarie Bank 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 Duketon Mining and Macquarie Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Duketon Mining and Macquarie Bank Limited, you can compare the effects of market volatilities on Duketon Mining and Macquarie Bank 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 Duketon Mining with a short position of Macquarie Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Duketon Mining and Macquarie Bank.
Diversification Opportunities for Duketon Mining and Macquarie Bank
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Duketon and Macquarie is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Duketon Mining and Macquarie Bank Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Macquarie Bank and Duketon Mining 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 Duketon Mining are associated (or correlated) with Macquarie Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Macquarie Bank has no effect on the direction of Duketon Mining i.e., Duketon Mining and Macquarie Bank go up and down completely randomly.
Pair Corralation between Duketon Mining and Macquarie Bank
Assuming the 90 days trading horizon Duketon Mining is expected to under-perform the Macquarie Bank. In addition to that, Duketon Mining is 12.14 times more volatile than Macquarie Bank Limited. It trades about -0.03 of its total potential returns per unit of risk. Macquarie Bank Limited is currently generating about 0.08 per unit of volatility. If you would invest 9,543 in Macquarie Bank Limited on September 25, 2024 and sell it today you would earn a total of 807.00 from holding Macquarie Bank Limited or generate 8.46% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Duketon Mining vs. Macquarie Bank Limited
Performance |
Timeline |
Duketon Mining |
Macquarie Bank |
Duketon Mining and Macquarie Bank Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Duketon Mining and Macquarie Bank
The main advantage of trading using opposite Duketon Mining and Macquarie Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Duketon Mining position performs unexpectedly, Macquarie Bank 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 Macquarie Bank will offset losses from the drop in Macquarie Bank's long position.Duketon Mining vs. Northern Star Resources | Duketon Mining vs. Evolution Mining | Duketon Mining vs. Bluescope Steel | Duketon Mining vs. Aneka Tambang Tbk |
Macquarie Bank vs. Black Rock Mining | Macquarie Bank vs. Duketon Mining | Macquarie Bank vs. Andean Silver Limited | Macquarie Bank vs. Perseus Mining |
Check out your portfolio center.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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
Stocks Directory Find actively traded stocks across global markets | |
Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
Equity Valuation Check real value of public entities based on technical and fundamental data | |
Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |