Correlation Between Macquarie Global and Special Opportunities

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

By analyzing existing cross correlation between Macquarie Global Infrastructure and Special Opportunities Closed, you can compare the effects of market volatilities on Macquarie Global and Special Opportunities 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 Global with a short position of Special Opportunities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Macquarie Global and Special Opportunities.

Diversification Opportunities for Macquarie Global and Special Opportunities

-0.67

Correlation Coefficient

Macquarie Global  Special Opportunities

Excellent diversification

The 3 months correlation between Macquarie and Special is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Macquarie Global Infrastructur and Special Opportunities Closed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Special Opportunities and Macquarie Global 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 Global Infrastructure are associated (or correlated) with Special Opportunities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Special Opportunities has no effect on the direction of Macquarie Global i.e., Macquarie Global and Special Opportunities go up and down completely randomly.

Pair Corralation between Macquarie Global and Special Opportunities

If you would invest  2.10  in Macquarie Global Infrastructure on September 23, 2024 and sell it today you would earn a total of  0.00  from holding Macquarie Global Infrastructure or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	4.76%
Values	Daily Returns

Macquarie Global Infrastructur  vs.  Special Opportunities Closed

Macquarie Global Inf

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Macquarie Global Infrastructure has generated negative risk-adjusted returns adding no value to fund investors. In spite of comparatively stable technical and fundamental indicators, Macquarie Global is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

Special Opportunities

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Special Opportunities Closed are ranked lower than 10 (%) of all funds and portfolios of funds over the last 90 days. In spite of rather unsteady basic indicators, Special Opportunities may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Macquarie Global and Special Opportunities

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

The idea behind Macquarie Global Infrastructure and Special Opportunities Closed 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 Global Correlations module to find global opportunities by holding instruments from different markets.