Correlation Between Banco Macro and Clovis Oncology
Can any of the company-specific risk be diversified away by investing in both Banco Macro and Clovis Oncology 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 Banco Macro and Clovis Oncology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Banco Macro SA and Clovis Oncology, you can compare the effects of market volatilities on Banco Macro and Clovis Oncology 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 Banco Macro with a short position of Clovis Oncology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Banco Macro and Clovis Oncology.
Diversification Opportunities for Banco Macro and Clovis Oncology
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Banco and Clovis is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Banco Macro SA and Clovis Oncology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clovis Oncology and Banco Macro 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 Banco Macro SA are associated (or correlated) with Clovis Oncology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clovis Oncology has no effect on the direction of Banco Macro i.e., Banco Macro and Clovis Oncology go up and down completely randomly.
Pair Corralation between Banco Macro and Clovis Oncology
If you would invest 2,426 in Banco Macro SA on September 3, 2024 and sell it today you would earn a total of 6,342 from holding Banco Macro SA or generate 261.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.4% |
| Values | Daily Returns |
Banco Macro SA vs. Clovis Oncology
Performance |
| Timeline |
| Banco Macro SA |
| Clovis Oncology |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Banco Macro and Clovis Oncology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Banco Macro and Clovis Oncology
The main advantage of trading using opposite Banco Macro and Clovis Oncology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Banco Macro position performs unexpectedly, Clovis Oncology 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 Clovis Oncology will offset losses from the drop in Clovis Oncology's long position.| Banco Macro vs. JPMorgan Chase Co | Banco Macro vs. Citigroup | Banco Macro vs. Wells Fargo | Banco Macro vs. Toronto Dominion Bank |
| Clovis Oncology vs. Cardinal Health | Clovis Oncology vs. Aquestive Therapeutics | Clovis Oncology vs. Microbot Medical | Clovis Oncology vs. LENSAR Inc |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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