Correlation Between Actinogen Medical and Macquarie Group
Can any of the company-specific risk be diversified away by investing in both Actinogen Medical 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 Actinogen Medical and Macquarie Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Actinogen Medical and Macquarie Group Ltd, you can compare the effects of market volatilities on Actinogen Medical 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 Actinogen Medical with a short position of Macquarie Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Actinogen Medical and Macquarie Group.
Diversification Opportunities for Actinogen Medical and Macquarie Group
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Actinogen and Macquarie is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Actinogen Medical and Macquarie Group Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Macquarie Group and Actinogen Medical 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 Actinogen Medical 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 Actinogen Medical i.e., Actinogen Medical and Macquarie Group go up and down completely randomly.
Pair Corralation between Actinogen Medical and Macquarie Group
Assuming the 90 days trading horizon Actinogen Medical is expected to generate 18.87 times more return on investment than Macquarie Group. However, Actinogen Medical is 18.87 times more volatile than Macquarie Group Ltd. It trades about 0.01 of its potential returns per unit of risk. Macquarie Group Ltd is currently generating about 0.06 per unit of risk. If you would invest 8.93 in Actinogen Medical on November 1, 2024 and sell it today you would lose (6.23) from holding Actinogen Medical or give up 69.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Actinogen Medical vs. Macquarie Group Ltd
Performance |
| Timeline |
| Actinogen Medical |
| Macquarie Group |
Actinogen Medical and Macquarie Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Actinogen Medical and Macquarie Group
The main advantage of trading using opposite Actinogen Medical and Macquarie Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Actinogen Medical 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.| Actinogen Medical vs. Microequities Asset Management | Actinogen Medical vs. Sports Entertainment Group | Actinogen Medical vs. Ras Technology Holdings | Actinogen Medical vs. Super Retail Group |
| Macquarie Group vs. Bank of Queensland | Macquarie Group vs. National Australia Bank | Macquarie Group vs. Insurance Australia Group | Macquarie Group vs. Technology One |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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