Correlation Between Macquarie Group and SIVERS SEMICONDUCTORS
Can any of the company-specific risk be diversified away by investing in both Macquarie Group and SIVERS SEMICONDUCTORS 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 Group and SIVERS SEMICONDUCTORS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Macquarie Group Limited and SIVERS SEMICONDUCTORS AB, you can compare the effects of market volatilities on Macquarie Group and SIVERS SEMICONDUCTORS 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 Group with a short position of SIVERS SEMICONDUCTORS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Macquarie Group and SIVERS SEMICONDUCTORS.
Diversification Opportunities for Macquarie Group and SIVERS SEMICONDUCTORS
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Macquarie and SIVERS is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Macquarie Group Limited and SIVERS SEMICONDUCTORS AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SIVERS SEMICONDUCTORS and Macquarie 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 Macquarie Group Limited are associated (or correlated) with SIVERS SEMICONDUCTORS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SIVERS SEMICONDUCTORS has no effect on the direction of Macquarie Group i.e., Macquarie Group and SIVERS SEMICONDUCTORS go up and down completely randomly.
Pair Corralation between Macquarie Group and SIVERS SEMICONDUCTORS
Assuming the 90 days horizon Macquarie Group Limited is expected to generate 0.32 times more return on investment than SIVERS SEMICONDUCTORS. However, Macquarie Group Limited is 3.12 times less risky than SIVERS SEMICONDUCTORS. It trades about 0.06 of its potential returns per unit of risk. SIVERS SEMICONDUCTORS AB is currently generating about -0.03 per unit of risk. If you would invest 9,659 in Macquarie Group Limited on August 29, 2024 and sell it today you would earn a total of 4,591 from holding Macquarie Group Limited or generate 47.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Macquarie Group Limited vs. SIVERS SEMICONDUCTORS AB
Performance |
| Timeline |
| Macquarie Group |
| SIVERS SEMICONDUCTORS |
Macquarie Group and SIVERS SEMICONDUCTORS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Macquarie Group and SIVERS SEMICONDUCTORS
The main advantage of trading using opposite Macquarie Group and SIVERS SEMICONDUCTORS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Macquarie Group position performs unexpectedly, SIVERS SEMICONDUCTORS 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 SIVERS SEMICONDUCTORS will offset losses from the drop in SIVERS SEMICONDUCTORS's long position.| Macquarie Group vs. MSCI Inc | Macquarie Group vs. Superior Plus Corp | Macquarie Group vs. NMI Holdings | Macquarie Group vs. Origin Agritech |
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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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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