Correlation Between Auctus Alternative and Macquarie Group
Can any of the company-specific risk be diversified away by investing in both Auctus Alternative 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 Auctus Alternative and Macquarie Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Auctus Alternative Investments and Macquarie Group Ltd, you can compare the effects of market volatilities on Auctus Alternative 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 Auctus Alternative with a short position of Macquarie Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Auctus Alternative and Macquarie Group.
Diversification Opportunities for Auctus Alternative and Macquarie Group
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Auctus and Macquarie is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Auctus Alternative Investments and Macquarie Group Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Macquarie Group and Auctus Alternative 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 Auctus Alternative Investments 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 Auctus Alternative i.e., Auctus Alternative and Macquarie Group go up and down completely randomly.
Pair Corralation between Auctus Alternative and Macquarie Group
Assuming the 90 days trading horizon Auctus Alternative Investments is expected to under-perform the Macquarie Group. In addition to that, Auctus Alternative is 8.01 times more volatile than Macquarie Group Ltd. It trades about -0.01 of its total potential returns per unit of risk. Macquarie Group Ltd is currently generating about 0.06 per unit of volatility. If you would invest 9,308 in Macquarie Group Ltd on November 1, 2024 and sell it today you would earn a total of 1,187 from holding Macquarie Group Ltd or generate 12.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Auctus Alternative Investments vs. Macquarie Group Ltd
Performance |
| Timeline |
| Auctus Alternative |
| Macquarie Group |
Auctus Alternative and Macquarie Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Auctus Alternative and Macquarie Group
The main advantage of trading using opposite Auctus Alternative and Macquarie Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Auctus Alternative 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.| Auctus Alternative vs. Advanced Braking Technology | Auctus Alternative vs. Macquarie Technology Group | Auctus Alternative vs. Anteris Technologies | Auctus Alternative vs. Complii FinTech Solutions |
| 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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