Correlation Between Banco Macro and Coronado Global
Can any of the company-specific risk be diversified away by investing in both Banco Macro and Coronado Global 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 Coronado Global 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 Coronado Global Resources, you can compare the effects of market volatilities on Banco Macro and Coronado Global 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 Coronado Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Banco Macro and Coronado Global.
Diversification Opportunities for Banco Macro and Coronado Global
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Banco and Coronado is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding Banco Macro SA and Coronado Global Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coronado Global Resources 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 Coronado Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coronado Global Resources has no effect on the direction of Banco Macro i.e., Banco Macro and Coronado Global go up and down completely randomly.
Pair Corralation between Banco Macro and Coronado Global
Considering the 90-day investment horizon Banco Macro SA is expected to generate 1.2 times more return on investment than Coronado Global. However, Banco Macro is 1.2 times more volatile than Coronado Global Resources. It trades about 0.14 of its potential returns per unit of risk. Coronado Global Resources is currently generating about -0.09 per unit of risk. If you would invest 7,941 in Banco Macro SA on October 25, 2024 and sell it today you would earn a total of 2,591 from holding Banco Macro SA or generate 32.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 93.75% |
| Values | Daily Returns |
Banco Macro SA vs. Coronado Global Resources
Performance |
| Timeline |
| Banco Macro SA |
| Coronado Global Resources |
Banco Macro and Coronado Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Banco Macro and Coronado Global
The main advantage of trading using opposite Banco Macro and Coronado Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Banco Macro position performs unexpectedly, Coronado Global 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 Coronado Global will offset losses from the drop in Coronado Global's long position.| Banco Macro vs. Grupo Supervielle SA | Banco Macro vs. BBVA Banco Frances | Banco Macro vs. Banco Bradesco SA | Banco Macro vs. Itau Unibanco Banco |
| Coronado Global vs. Alpha Metallurgical Resources | Coronado Global vs. Now Inc | Coronado Global vs. Oracle | Coronado Global vs. Tegna 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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