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
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Macquarie and Auctus is -0.19. 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 is expected to generate 3.02 times less return on investment than Auctus Alternative. But when comparing it to its historical volatility, Macquarie Bank Limited is 8.76 times less risky than Auctus Alternative. It trades about 0.12 of its potential returns per unit of risk. Auctus Alternative Investments is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 55.00 in Auctus Alternative Investments on September 26, 2024 and sell it today you would earn a total of 1.00 from holding Auctus Alternative Investments or generate 1.82% 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. NEWMONT PORATION CDI | Macquarie Bank vs. Ssr Mining | Macquarie Bank vs. Ora Banda Mining | Macquarie Bank vs. Black Cat Syndicate |
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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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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