Correlation Between Macquarie Technology and MoneyMe

Can any of the company-specific risk be diversified away by investing in both Macquarie Technology and MoneyMe 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 MoneyMe 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 MoneyMe, you can compare the effects of market volatilities on Macquarie Technology and MoneyMe 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 MoneyMe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Macquarie Technology and MoneyMe.

Diversification Opportunities for Macquarie Technology and MoneyMe

0.79

Correlation Coefficient

Macquarie Technology  MoneyMe

Poor diversification

The 3 months correlation between Macquarie and MoneyMe is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Macquarie Technology Group and MoneyMe in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MoneyMe 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 MoneyMe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MoneyMe has no effect on the direction of Macquarie Technology i.e., Macquarie Technology and MoneyMe go up and down completely randomly.

Pair Corralation between Macquarie Technology and MoneyMe

Assuming the 90 days trading horizon Macquarie Technology Group is expected to under-perform the MoneyMe. But the stock apears to be less risky and, when comparing its historical volatility, Macquarie Technology Group is 3.72 times less risky than MoneyMe. The stock trades about -0.23 of its potential returns per unit of risk. The MoneyMe is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest  17.00  in MoneyMe on December 23, 2024 and sell it today you would lose (4.00) from holding MoneyMe or give up 23.53% of portfolio value over 90 days.

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

Macquarie Technology Group  vs.  MoneyMe

Macquarie Technology

Risk-Adjusted Performance

Very Weak

Over the last 90 days Macquarie Technology Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

MoneyMe

Risk-Adjusted Performance

Very Weak

Over the last 90 days MoneyMe has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's technical and fundamental indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Macquarie Technology and MoneyMe

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

The idea behind Macquarie Technology Group and MoneyMe 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.