Correlation Between Amani Gold and Macquarie Technology
Can any of the company-specific risk be diversified away by investing in both Amani Gold and Macquarie Technology 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 Amani Gold and Macquarie Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amani Gold and Macquarie Technology Group, you can compare the effects of market volatilities on Amani Gold and Macquarie Technology 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 Amani Gold with a short position of Macquarie Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amani Gold and Macquarie Technology.
Diversification Opportunities for Amani Gold and Macquarie Technology
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Amani and Macquarie is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Amani Gold and Macquarie Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Macquarie Technology and Amani Gold 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 Amani Gold are associated (or correlated) with Macquarie Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Macquarie Technology has no effect on the direction of Amani Gold i.e., Amani Gold and Macquarie Technology go up and down completely randomly.
Pair Corralation between Amani Gold and Macquarie Technology
If you would invest 8,853 in Macquarie Technology Group on September 15, 2024 and sell it today you would lose (189.00) from holding Macquarie Technology Group or give up 2.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amani Gold vs. Macquarie Technology Group
Performance |
| Timeline |
| Amani Gold |
| Macquarie Technology |
Amani Gold and Macquarie Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amani Gold and Macquarie Technology
The main advantage of trading using opposite Amani Gold and Macquarie Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amani Gold position performs unexpectedly, Macquarie Technology 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 Technology will offset losses from the drop in Macquarie Technology's long position.| Amani Gold vs. Northern Star Resources | Amani Gold vs. Evolution Mining | Amani Gold vs. Bluescope Steel | Amani Gold vs. Sandfire Resources NL |
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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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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