Correlation Between Super Retail and Macquarie Bank

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Super Retail and Macquarie Bank 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 Super Retail and Macquarie Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Super Retail Group and Macquarie Bank Ltd, you can compare the effects of market volatilities on Super Retail and Macquarie Bank 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 Super Retail with a short position of Macquarie Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Super Retail and Macquarie Bank.

Diversification Opportunities for Super Retail and Macquarie Bank

-0.8
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Super and Macquarie is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Super Retail Group and Macquarie Bank Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Macquarie Bank and Super Retail 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 Super Retail Group are associated (or correlated) with Macquarie Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Macquarie Bank has no effect on the direction of Super Retail i.e., Super Retail and Macquarie Bank go up and down completely randomly.

Pair Corralation between Super Retail and Macquarie Bank

Assuming the 90 days trading horizon Super Retail Group is expected to under-perform the Macquarie Bank. In addition to that, Super Retail is 6.66 times more volatile than Macquarie Bank Ltd. It trades about -0.15 of its total potential returns per unit of risk. Macquarie Bank Ltd is currently generating about 0.06 per unit of volatility. If you would invest  10,360  in Macquarie Bank Ltd on September 5, 2024 and sell it today you would earn a total of  110.00  from holding Macquarie Bank Ltd or generate 1.06% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Super Retail Group  vs.  Macquarie Bank Ltd

 Performance 
       Timeline  
Super Retail Group 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Super Retail 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 essential indicators remain comparatively stable which may send shares a bit higher in January 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.
Macquarie Bank 

Risk-Adjusted Performance

5 of 100

 
Weak
 
Strong
Modest
Compared to the overall equity markets, risk-adjusted returns on investments in Macquarie Bank Ltd are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Macquarie Bank is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Super Retail and Macquarie Bank Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Super Retail and Macquarie Bank

The main advantage of trading using opposite Super Retail and Macquarie Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Super Retail position performs unexpectedly, Macquarie Bank 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 Macquarie Bank will offset losses from the drop in Macquarie Bank's long position.
The idea behind Super Retail Group and Macquarie Bank Ltd 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.
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.

Other Complementary Tools

Equity Valuation
Check real value of public entities based on technical and fundamental data
Premium Stories
Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope
Sync Your Broker
Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors.
Equity Forecasting
Use basic forecasting models to generate price predictions and determine price momentum
Theme Ratings
Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance