Correlation Between Cboe UK and Macfarlane Group
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By analyzing existing cross correlation between Cboe UK Consumer and Macfarlane Group PLC, you can compare the effects of market volatilities on Cboe UK and Macfarlane Group 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 Cboe UK with a short position of Macfarlane Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cboe UK and Macfarlane Group.
Diversification Opportunities for Cboe UK and Macfarlane Group
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cboe and Macfarlane is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Cboe UK Consumer and Macfarlane Group PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Macfarlane Group PLC and Cboe UK 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 Cboe UK Consumer are associated (or correlated) with Macfarlane Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Macfarlane Group PLC has no effect on the direction of Cboe UK i.e., Cboe UK and Macfarlane Group go up and down completely randomly.
Pair Corralation between Cboe UK and Macfarlane Group
Assuming the 90 days trading horizon Cboe UK Consumer is expected to generate 0.73 times more return on investment than Macfarlane Group. However, Cboe UK Consumer is 1.38 times less risky than Macfarlane Group. It trades about 0.48 of its potential returns per unit of risk. Macfarlane Group PLC is currently generating about -0.24 per unit of risk. If you would invest 2,925,026 in Cboe UK Consumer on August 30, 2024 and sell it today you would earn a total of 336,221 from holding Cboe UK Consumer or generate 11.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cboe UK Consumer vs. Macfarlane Group PLC
Performance |
| Timeline |
Cboe UK and Macfarlane Group Volatility Contrast
Predicted Return Density |
| Returns |
Cboe UK Consumer
Pair trading matchups for Cboe UK
Macfarlane Group PLC
Pair trading matchups for Macfarlane Group
Pair Trading with Cboe UK and Macfarlane Group
The main advantage of trading using opposite Cboe UK and Macfarlane Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cboe UK position performs unexpectedly, Macfarlane Group 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 Macfarlane Group will offset losses from the drop in Macfarlane Group's long position.| Cboe UK vs. Southern Copper Corp | Cboe UK vs. Made Tech Group | Cboe UK vs. Wheaton Precious Metals | Cboe UK vs. TechnipFMC PLC |
| Macfarlane Group vs. Berkshire Hathaway | Macfarlane Group vs. Chocoladefabriken Lindt Spruengli | Macfarlane Group vs. Rockwood Realisation PLC | Macfarlane Group vs. Toyota Motor Corp |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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