Correlation Between Beston Global and Macquarie Technology
Can any of the company-specific risk be diversified away by investing in both Beston Global 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 Beston Global and Macquarie Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Beston Global Food and Macquarie Technology Group, you can compare the effects of market volatilities on Beston Global 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 Beston Global with a short position of Macquarie Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beston Global and Macquarie Technology.
Diversification Opportunities for Beston Global and Macquarie Technology
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Beston and Macquarie is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Beston Global Food and Macquarie Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Macquarie Technology and Beston Global 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 Beston Global Food 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 Beston Global i.e., Beston Global and Macquarie Technology go up and down completely randomly.
Pair Corralation between Beston Global and Macquarie Technology
If you would invest 8,583 in Macquarie Technology Group on October 11, 2024 and sell it today you would earn a total of 361.00 from holding Macquarie Technology Group or generate 4.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beston Global Food vs. Macquarie Technology Group
Performance |
| Timeline |
| Beston Global Food |
| Macquarie Technology |
Beston Global and Macquarie Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beston Global and Macquarie Technology
The main advantage of trading using opposite Beston Global and Macquarie Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beston Global 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.| Beston Global vs. Aneka Tambang Tbk | Beston Global vs. Commonwealth Bank of | Beston Global vs. Australia and New | Beston Global vs. ANZ Group Holdings |
| Macquarie Technology vs. WiseTech Global Limited | Macquarie Technology vs. Collins Foods | Macquarie Technology vs. TPG Telecom | Macquarie Technology vs. Beston Global Food |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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