Correlation Between DMC Mining and Macquarie Group
Can any of the company-specific risk be diversified away by investing in both DMC Mining and Macquarie Group 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 DMC Mining and Macquarie Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DMC Mining and Macquarie Group Ltd, you can compare the effects of market volatilities on DMC Mining and Macquarie 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 DMC Mining with a short position of Macquarie Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of DMC Mining and Macquarie Group.
Diversification Opportunities for DMC Mining and Macquarie Group
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between DMC and Macquarie is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding DMC Mining and Macquarie Group Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Macquarie Group and DMC Mining 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 DMC Mining are associated (or correlated) with Macquarie Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Macquarie Group has no effect on the direction of DMC Mining i.e., DMC Mining and Macquarie Group go up and down completely randomly.
Pair Corralation between DMC Mining and Macquarie Group
If you would invest 9,868 in Macquarie Group Ltd on November 3, 2024 and sell it today you would earn a total of 582.00 from holding Macquarie Group Ltd or generate 5.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DMC Mining vs. Macquarie Group Ltd
Performance |
| Timeline |
| DMC Mining |
| Macquarie Group |
DMC Mining and Macquarie Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DMC Mining and Macquarie Group
The main advantage of trading using opposite DMC Mining and Macquarie Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DMC Mining position performs unexpectedly, Macquarie 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 Macquarie Group will offset losses from the drop in Macquarie Group's long position.| DMC Mining vs. Stelar Metals | DMC Mining vs. Health and Plant | DMC Mining vs. Ramsay Health Care | DMC Mining vs. Aeon Metals |
| Macquarie Group vs. Hutchison Telecommunications | Macquarie Group vs. Bisalloy Steel Group | Macquarie Group vs. Queste Communications | Macquarie Group vs. Seven West Media |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |