Correlation Between Macquarie Technology and Antipa Minerals

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

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

Diversification Opportunities for Macquarie Technology and Antipa Minerals

-0.59

Correlation Coefficient

Macquarie Technology  Antipa Minerals

Excellent diversification

The 3 months correlation between Macquarie and Antipa is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Macquarie Technology Group and Antipa Minerals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Antipa Minerals and Macquarie Technology 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 Macquarie Technology Group are associated (or correlated) with Antipa Minerals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Antipa Minerals has no effect on the direction of Macquarie Technology i.e., Macquarie Technology and Antipa Minerals go up and down completely randomly.

Pair Corralation between Macquarie Technology and Antipa Minerals

Assuming the 90 days trading horizon Macquarie Technology is expected to generate 4.55 times less return on investment than Antipa Minerals. But when comparing it to its historical volatility, Macquarie Technology Group is 3.68 times less risky than Antipa Minerals. It trades about 0.02 of its potential returns per unit of risk. Antipa Minerals is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  2.70  in Antipa Minerals on October 5, 2024 and sell it today you would earn a total of  0.00  from holding Antipa Minerals or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	95.0%
Values	Daily Returns

Macquarie Technology Group  vs.  Antipa Minerals

Macquarie Technology

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Macquarie Technology Group are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Macquarie Technology is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Antipa Minerals

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Antipa Minerals are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Antipa Minerals unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Macquarie Technology and Antipa Minerals

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

The idea behind Macquarie Technology Group and Antipa Minerals 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.