Correlation Between FATFISH GROUP and Macquarie Group
Can any of the company-specific risk be diversified away by investing in both FATFISH GROUP and Macquarie Group 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 FATFISH GROUP and Macquarie Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FATFISH GROUP LTD and Macquarie Group Limited, you can compare the effects of market volatilities on FATFISH GROUP and Macquarie Group 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 FATFISH GROUP with a short position of Macquarie Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of FATFISH GROUP and Macquarie Group.
Diversification Opportunities for FATFISH GROUP and Macquarie Group
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between FATFISH and Macquarie is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding FATFISH GROUP LTD and Macquarie Group Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Macquarie Group and FATFISH GROUP 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 FATFISH GROUP LTD are associated (or correlated) with Macquarie Group. 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 FATFISH GROUP i.e., FATFISH GROUP and Macquarie Group go up and down completely randomly.
Pair Corralation between FATFISH GROUP and Macquarie Group
Assuming the 90 days horizon FATFISH GROUP LTD is expected to generate 7.96 times more return on investment than Macquarie Group. However, FATFISH GROUP is 7.96 times more volatile than Macquarie Group Limited. It trades about 0.05 of its potential returns per unit of risk. Macquarie Group Limited is currently generating about 0.07 per unit of risk. If you would invest 0.70 in FATFISH GROUP LTD on August 31, 2024 and sell it today you would lose (0.20) from holding FATFISH GROUP LTD or give up 28.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.74% |
| Values | Daily Returns |
FATFISH GROUP LTD vs. Macquarie Group Limited
Performance |
| Timeline |
| FATFISH GROUP LTD |
| Macquarie Group |
FATFISH GROUP and Macquarie Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FATFISH GROUP and Macquarie Group
The main advantage of trading using opposite FATFISH GROUP and Macquarie Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FATFISH GROUP position performs unexpectedly, Macquarie Group 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 Group will offset losses from the drop in Macquarie Group's long position.| FATFISH GROUP vs. Morgan Stanley | FATFISH GROUP vs. The Goldman Sachs | FATFISH GROUP vs. Superior Plus Corp | FATFISH GROUP vs. NMI Holdings |
| Macquarie Group vs. Harmony Gold Mining | Macquarie Group vs. Automatic Data Processing | Macquarie Group vs. MAGNUM MINING EXP | Macquarie Group vs. MINCO SILVER |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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