Correlation Between Banco Macro and New York
Can any of the company-specific risk be diversified away by investing in both Banco Macro and New York 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 New York 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 New York Community, you can compare the effects of market volatilities on Banco Macro and New York 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 New York. Check out your portfolio center. Please also check ongoing floating volatility patterns of Banco Macro and New York.
Diversification Opportunities for Banco Macro and New York
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Banco and New is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Banco Macro SA and New York Community in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New York Community 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 New York. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New York Community has no effect on the direction of Banco Macro i.e., Banco Macro and New York go up and down completely randomly.
Pair Corralation between Banco Macro and New York
Considering the 90-day investment horizon Banco Macro SA is expected to generate 0.76 times more return on investment than New York. However, Banco Macro SA is 1.32 times less risky than New York. It trades about 0.13 of its potential returns per unit of risk. New York Community is currently generating about -0.01 per unit of risk. If you would invest 1,096 in Banco Macro SA on August 30, 2024 and sell it today you would earn a total of 7,108 from holding Banco Macro SA or generate 648.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.19% |
| Values | Daily Returns |
Banco Macro SA vs. New York Community
Performance |
| Timeline |
| Banco Macro SA |
| New York Community |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Weak
Banco Macro and New York Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Banco Macro and New York
The main advantage of trading using opposite Banco Macro and New York positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Banco Macro position performs unexpectedly, New York 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 New York will offset losses from the drop in New York'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 |
| New York vs. KeyCorp | New York vs. Fifth Third Bancorp | New York vs. Regions Financial | New York vs. Zions Bancorporation |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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