Correlation Between De Licacy and Macroblock
Can any of the company-specific risk be diversified away by investing in both De Licacy and Macroblock 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 De Licacy and Macroblock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between De Licacy Industrial and Macroblock, you can compare the effects of market volatilities on De Licacy and Macroblock 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 De Licacy with a short position of Macroblock. Check out your portfolio center. Please also check ongoing floating volatility patterns of De Licacy and Macroblock.
Diversification Opportunities for De Licacy and Macroblock
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 1464 and Macroblock is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding De Licacy Industrial and Macroblock in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Macroblock and De Licacy 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 De Licacy Industrial are associated (or correlated) with Macroblock. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Macroblock has no effect on the direction of De Licacy i.e., De Licacy and Macroblock go up and down completely randomly.
Pair Corralation between De Licacy and Macroblock
Assuming the 90 days trading horizon De Licacy Industrial is expected to generate 1.11 times more return on investment than Macroblock. However, De Licacy is 1.11 times more volatile than Macroblock. It trades about 0.04 of its potential returns per unit of risk. Macroblock is currently generating about -0.09 per unit of risk. If you would invest 1,490 in De Licacy Industrial on September 5, 2024 and sell it today you would earn a total of 125.00 from holding De Licacy Industrial or generate 8.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
De Licacy Industrial vs. Macroblock
Performance |
| Timeline |
| De Licacy Industrial |
| Macroblock |
De Licacy and Macroblock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with De Licacy and Macroblock
The main advantage of trading using opposite De Licacy and Macroblock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if De Licacy position performs unexpectedly, Macroblock 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 Macroblock will offset losses from the drop in Macroblock's long position.| De Licacy vs. Tainan Enterprises Co | De Licacy vs. Nien Hsing Textile | De Licacy vs. Wisher Industrial Co | De Licacy vs. Tex Ray Industrial Co |
| Macroblock vs. Skardin Industrial | Macroblock vs. Feng Ching Metal | Macroblock vs. Great China Metal | Macroblock vs. De Licacy Industrial |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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