Correlation Between Atlas Corp and Macmahon Holdings
Can any of the company-specific risk be diversified away by investing in both Atlas Corp and Macmahon Holdings 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 Atlas Corp and Macmahon Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atlas Corp and Macmahon Holdings Limited, you can compare the effects of market volatilities on Atlas Corp and Macmahon Holdings 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 Atlas Corp with a short position of Macmahon Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atlas Corp and Macmahon Holdings.
Diversification Opportunities for Atlas Corp and Macmahon Holdings
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Atlas and Macmahon is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Atlas Corp and Macmahon Holdings Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Macmahon Holdings and Atlas Corp 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 Atlas Corp are associated (or correlated) with Macmahon Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Macmahon Holdings has no effect on the direction of Atlas Corp i.e., Atlas Corp and Macmahon Holdings go up and down completely randomly.
Pair Corralation between Atlas Corp and Macmahon Holdings
Assuming the 90 days horizon Atlas Corp is expected to generate 23.1 times less return on investment than Macmahon Holdings. But when comparing it to its historical volatility, Atlas Corp is 11.36 times less risky than Macmahon Holdings. It trades about 0.06 of its potential returns per unit of risk. Macmahon Holdings Limited is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 19.00 in Macmahon Holdings Limited on September 14, 2024 and sell it today you would earn a total of 6.00 from holding Macmahon Holdings Limited or generate 31.58% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 98.44% |
Values | Daily Returns |
Atlas Corp vs. Macmahon Holdings Limited
Performance |
Timeline |
Atlas Corp |
Macmahon Holdings |
Atlas Corp and Macmahon Holdings Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Atlas Corp and Macmahon Holdings
The main advantage of trading using opposite Atlas Corp and Macmahon Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atlas Corp position performs unexpectedly, Macmahon Holdings 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 Macmahon Holdings will offset losses from the drop in Macmahon Holdings' long position.Atlas Corp vs. Harrow Health 8625 | Atlas Corp vs. Babcock Wilcox Enterprises, | Atlas Corp vs. B Riley Financial | Atlas Corp vs. Oxford Lane Capital |
Macmahon Holdings vs. Advantage Solutions | Macmahon Holdings vs. Atlas Corp | Macmahon Holdings vs. PureCycle Technologies | Macmahon Holdings vs. WM Technology |
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.
Other Complementary Tools
USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
Commodity Directory Find actively traded commodities issued by global exchanges | |
Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |