Correlation Between Aspire Mining and Macquarie Bank
Can any of the company-specific risk be diversified away by investing in both Aspire Mining and Macquarie Bank 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 Aspire Mining and Macquarie Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aspire Mining and Macquarie Bank Limited, you can compare the effects of market volatilities on Aspire Mining and Macquarie Bank 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 Aspire Mining with a short position of Macquarie Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aspire Mining and Macquarie Bank.
Diversification Opportunities for Aspire Mining and Macquarie Bank
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Aspire and Macquarie is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Aspire Mining and Macquarie Bank Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Macquarie Bank and Aspire Mining 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 Aspire Mining are associated (or correlated) with Macquarie Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Macquarie Bank has no effect on the direction of Aspire Mining i.e., Aspire Mining and Macquarie Bank go up and down completely randomly.
Pair Corralation between Aspire Mining and Macquarie Bank
Assuming the 90 days trading horizon Aspire Mining is expected to generate 13.31 times more return on investment than Macquarie Bank. However, Aspire Mining is 13.31 times more volatile than Macquarie Bank Limited. It trades about 0.07 of its potential returns per unit of risk. Macquarie Bank Limited is currently generating about 0.06 per unit of risk. If you would invest 6.80 in Aspire Mining on October 17, 2024 and sell it today you would earn a total of 18.20 from holding Aspire Mining or generate 267.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Aspire Mining vs. Macquarie Bank Limited
Performance |
| Timeline |
| Aspire Mining |
| Macquarie Bank |
Aspire Mining and Macquarie Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aspire Mining and Macquarie Bank
The main advantage of trading using opposite Aspire Mining and Macquarie Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aspire Mining position performs unexpectedly, Macquarie Bank 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 Bank will offset losses from the drop in Macquarie Bank's long position.| Aspire Mining vs. Phoslock Environmental Technologies | Aspire Mining vs. 4Dmedical | Aspire Mining vs. Maggie Beer Holdings | Aspire Mining vs. Red Hill Iron |
| Macquarie Bank vs. Oneview Healthcare PLC | Macquarie Bank vs. Andean Silver Limited | Macquarie Bank vs. Aspire Mining | Macquarie Bank vs. Qbe Insurance Group |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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