Correlation Between Macquarie Bank and Auctus Alternative
Can any of the company-specific risk be diversified away by investing in both Macquarie Bank and Auctus Alternative 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 and Auctus Alternative into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Macquarie Bank Limited and Auctus Alternative Investments, you can compare the effects of market volatilities on Macquarie Bank and Auctus Alternative 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 with a short position of Auctus Alternative. Check out your portfolio center. Please also check ongoing floating volatility patterns of Macquarie Bank and Auctus Alternative.
Diversification Opportunities for Macquarie Bank and Auctus Alternative
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Macquarie and Auctus is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Macquarie Bank Limited and Auctus Alternative Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Auctus Alternative and Macquarie Bank 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 Limited are associated (or correlated) with Auctus Alternative. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Auctus Alternative has no effect on the direction of Macquarie Bank i.e., Macquarie Bank and Auctus Alternative go up and down completely randomly.
Pair Corralation between Macquarie Bank and Auctus Alternative
Assuming the 90 days trading horizon Macquarie Bank Limited is expected to generate 0.14 times more return on investment than Auctus Alternative. However, Macquarie Bank Limited is 7.27 times less risky than Auctus Alternative. It trades about 0.06 of its potential returns per unit of risk. Auctus Alternative Investments is currently generating about 0.0 per unit of risk. If you would invest 9,151 in Macquarie Bank Limited on September 25, 2024 and sell it today you would earn a total of 1,249 from holding Macquarie Bank Limited or generate 13.65% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Macquarie Bank Limited vs. Auctus Alternative Investments
Performance |
Timeline |
Macquarie Bank |
Auctus Alternative |
Macquarie Bank and Auctus Alternative Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Macquarie Bank and Auctus Alternative
The main advantage of trading using opposite Macquarie Bank and Auctus Alternative positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Macquarie Bank position performs unexpectedly, Auctus Alternative 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 Auctus Alternative will offset losses from the drop in Auctus Alternative's long position.Macquarie Bank vs. Black Rock Mining | Macquarie Bank vs. Duketon Mining | Macquarie Bank vs. Andean Silver Limited | Macquarie Bank vs. Perseus Mining |
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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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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