Correlation Between Maggie Beer and DY6 Metals
Can any of the company-specific risk be diversified away by investing in both Maggie Beer and DY6 Metals 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 Maggie Beer and DY6 Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Maggie Beer Holdings and DY6 Metals, you can compare the effects of market volatilities on Maggie Beer and DY6 Metals 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 Maggie Beer with a short position of DY6 Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maggie Beer and DY6 Metals.
Diversification Opportunities for Maggie Beer and DY6 Metals
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Maggie and DY6 is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Maggie Beer Holdings and DY6 Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DY6 Metals and Maggie Beer 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 Maggie Beer Holdings are associated (or correlated) with DY6 Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DY6 Metals has no effect on the direction of Maggie Beer i.e., Maggie Beer and DY6 Metals go up and down completely randomly.
Pair Corralation between Maggie Beer and DY6 Metals
Assuming the 90 days trading horizon Maggie Beer Holdings is expected to generate 1.04 times more return on investment than DY6 Metals. However, Maggie Beer is 1.04 times more volatile than DY6 Metals. It trades about 0.02 of its potential returns per unit of risk. DY6 Metals is currently generating about -0.19 per unit of risk. If you would invest 5.80 in Maggie Beer Holdings on October 6, 2024 and sell it today you would earn a total of 0.00 from holding Maggie Beer Holdings or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Maggie Beer Holdings vs. DY6 Metals
Performance |
Timeline |
Maggie Beer Holdings |
DY6 Metals |
Maggie Beer and DY6 Metals Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Maggie Beer and DY6 Metals
The main advantage of trading using opposite Maggie Beer and DY6 Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maggie Beer position performs unexpectedly, DY6 Metals 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 DY6 Metals will offset losses from the drop in DY6 Metals' long position.Maggie Beer vs. Kkr Credit Income | Maggie Beer vs. Bank of Queensland | Maggie Beer vs. Sayona Mining | Maggie Beer vs. Nufarm Finance NZ |
DY6 Metals vs. Falcon Metals | DY6 Metals vs. Home Consortium | DY6 Metals vs. Aurelia Metals | DY6 Metals vs. Black Rock 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
Fundamental Analysis View fundamental data based on most recent published financial statements | |
ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |