Correlation Between ABACUS STORAGE and Macquarie
Can any of the company-specific risk be diversified away by investing in both ABACUS STORAGE and Macquarie 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 ABACUS STORAGE and Macquarie into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ABACUS STORAGE KING and Macquarie Group, you can compare the effects of market volatilities on ABACUS STORAGE and Macquarie 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 ABACUS STORAGE with a short position of Macquarie. Check out your portfolio center. Please also check ongoing floating volatility patterns of ABACUS STORAGE and Macquarie.
Diversification Opportunities for ABACUS STORAGE and Macquarie
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between ABACUS and Macquarie is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding ABACUS STORAGE KING and Macquarie Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Macquarie Group and ABACUS STORAGE 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 ABACUS STORAGE KING are associated (or correlated) with Macquarie. 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 ABACUS STORAGE i.e., ABACUS STORAGE and Macquarie go up and down completely randomly.
Pair Corralation between ABACUS STORAGE and Macquarie
Assuming the 90 days trading horizon ABACUS STORAGE KING is expected to generate 43.36 times more return on investment than Macquarie. However, ABACUS STORAGE is 43.36 times more volatile than Macquarie Group. It trades about 0.05 of its potential returns per unit of risk. Macquarie Group is currently generating about 0.05 per unit of risk. If you would invest 125.00 in ABACUS STORAGE KING on October 18, 2024 and sell it today you would lose (12.00) from holding ABACUS STORAGE KING or give up 9.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 74.6% |
| Values | Daily Returns |
ABACUS STORAGE KING vs. Macquarie Group
Performance |
| Timeline |
| ABACUS STORAGE KING |
| Macquarie Group |
ABACUS STORAGE and Macquarie Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ABACUS STORAGE and Macquarie
The main advantage of trading using opposite ABACUS STORAGE and Macquarie positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ABACUS STORAGE position performs unexpectedly, Macquarie 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 will offset losses from the drop in Macquarie's long position.| ABACUS STORAGE vs. Computershare | ABACUS STORAGE vs. Ainsworth Game Technology | ABACUS STORAGE vs. EROAD | ABACUS STORAGE vs. Step One Clothing |
| Macquarie vs. ABACUS STORAGE KING | Macquarie vs. MetalsGrove Mining | Macquarie vs. Balkan Mining and | Macquarie vs. Dalaroo Metals |
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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