Correlation Between Macquarie Bank Ltd and Anteris Technologies

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

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

Diversification Opportunities for Macquarie Bank Ltd and Anteris Technologies

0.47

Correlation Coefficient

Macquarie Bank Ltd  Anteris Technologies

Very weak diversification

The 3 months correlation between Macquarie and Anteris is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Macquarie Bank Ltd and Anteris Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anteris Technologies and Macquarie Bank Ltd 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 Bank Ltd are associated (or correlated) with Anteris Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anteris Technologies has no effect on the direction of Macquarie Bank Ltd i.e., Macquarie Bank Ltd and Anteris Technologies go up and down completely randomly.

Pair Corralation between Macquarie Bank Ltd and Anteris Technologies

Assuming the 90 days trading horizon Macquarie Bank Ltd is expected to generate 11.8 times less return on investment than Anteris Technologies. But when comparing it to its historical volatility, Macquarie Bank Ltd is 25.63 times less risky than Anteris Technologies. It trades about 0.09 of its potential returns per unit of risk. Anteris Technologies is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  829.00  in Anteris Technologies on December 25, 2024 and sell it today you would earn a total of  48.00  from holding Anteris Technologies or generate 5.79% return on investment over 90 days.

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

Macquarie Bank Ltd  vs.  Anteris Technologies

Macquarie Bank Ltd

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Macquarie Bank Ltd are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Macquarie Bank Ltd is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Anteris Technologies

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Anteris Technologies are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Anteris Technologies may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Macquarie Bank Ltd and Anteris Technologies

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

The idea behind Macquarie Bank Ltd and Anteris Technologies 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.