Correlation Between Amarc Resources and Macmahon Holdings
Can any of the company-specific risk be diversified away by investing in both Amarc Resources and Macmahon Holdings 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 Amarc Resources and Macmahon Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amarc Resources and Macmahon Holdings Limited, you can compare the effects of market volatilities on Amarc Resources and Macmahon Holdings 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 Amarc Resources with a short position of Macmahon Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amarc Resources and Macmahon Holdings.
Diversification Opportunities for Amarc Resources and Macmahon Holdings
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Amarc and Macmahon is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Amarc Resources and Macmahon Holdings Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Macmahon Holdings and Amarc Resources 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 Amarc Resources are associated (or correlated) with Macmahon Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Macmahon Holdings has no effect on the direction of Amarc Resources i.e., Amarc Resources and Macmahon Holdings go up and down completely randomly.
Pair Corralation between Amarc Resources and Macmahon Holdings
If you would invest 25.00 in Macmahon Holdings Limited on September 1, 2024 and sell it today you would earn a total of 0.00 from holding Macmahon Holdings Limited or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amarc Resources vs. Macmahon Holdings Limited
Performance |
| Timeline |
| Amarc Resources |
| Macmahon Holdings |
Amarc Resources and Macmahon Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amarc Resources and Macmahon Holdings
The main advantage of trading using opposite Amarc Resources and Macmahon Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amarc Resources position performs unexpectedly, Macmahon Holdings 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 Macmahon Holdings will offset losses from the drop in Macmahon Holdings' long position.| Amarc Resources vs. Durango Resources | Amarc Resources vs. Avarone Metals | Amarc Resources vs. Pampa Metals | Amarc Resources vs. Sun Summit Minerals |
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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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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