Correlation Between Wellnex Life and Macquarie
Can any of the company-specific risk be diversified away by investing in both Wellnex Life and Macquarie 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 Wellnex Life and Macquarie into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wellnex Life and Macquarie Group, you can compare the effects of market volatilities on Wellnex Life and Macquarie 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 Wellnex Life with a short position of Macquarie. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wellnex Life and Macquarie.
Diversification Opportunities for Wellnex Life and Macquarie
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Wellnex and Macquarie is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Wellnex Life and Macquarie Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Macquarie Group and Wellnex Life 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 Wellnex Life are associated (or correlated) with Macquarie. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Macquarie Group has no effect on the direction of Wellnex Life i.e., Wellnex Life and Macquarie go up and down completely randomly.
Pair Corralation between Wellnex Life and Macquarie
Assuming the 90 days trading horizon Wellnex Life is expected to generate 98.97 times more return on investment than Macquarie. However, Wellnex Life is 98.97 times more volatile than Macquarie Group. It trades about 0.11 of its potential returns per unit of risk. Macquarie Group is currently generating about 0.07 per unit of risk. If you would invest 5.70 in Wellnex Life on September 20, 2024 and sell it today you would earn a total of 68.30 from holding Wellnex Life or generate 1198.25% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Wellnex Life vs. Macquarie Group
Performance |
Timeline |
Wellnex Life |
Macquarie Group |
Wellnex Life and Macquarie Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Wellnex Life and Macquarie
The main advantage of trading using opposite Wellnex Life and Macquarie positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wellnex Life position performs unexpectedly, Macquarie 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 will offset losses from the drop in Macquarie's long position.Wellnex Life vs. Aneka Tambang Tbk | Wellnex Life vs. Macquarie Group | Wellnex Life vs. Macquarie Group Ltd | Wellnex Life vs. Challenger |
Macquarie vs. Westpac Banking | Macquarie vs. Ecofibre | Macquarie vs. iShares Global Healthcare | Macquarie vs. Adriatic Metals Plc |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
Money Managers Screen money managers from public funds and ETFs managed around the world | |
Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |