Correlation Between Dug Technology and Macquarie
Can any of the company-specific risk be diversified away by investing in both Dug Technology and Macquarie 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 Dug Technology and Macquarie into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dug Technology and Macquarie Group, you can compare the effects of market volatilities on Dug Technology and Macquarie 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 Dug Technology with a short position of Macquarie. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dug Technology and Macquarie.
Diversification Opportunities for Dug Technology and Macquarie
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Dug and Macquarie is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Dug Technology and Macquarie Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Macquarie Group and Dug Technology 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 Dug Technology are associated (or correlated) with Macquarie. 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 Dug Technology i.e., Dug Technology and Macquarie go up and down completely randomly.
Pair Corralation between Dug Technology and Macquarie
Assuming the 90 days trading horizon Dug Technology is expected to generate 3.08 times more return on investment than Macquarie. However, Dug Technology is 3.08 times more volatile than Macquarie Group. It trades about 0.25 of its potential returns per unit of risk. Macquarie Group is currently generating about 0.25 per unit of risk. If you would invest 133.00 in Dug Technology on October 26, 2024 and sell it today you would earn a total of 25.00 from holding Dug Technology or generate 18.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dug Technology vs. Macquarie Group
Performance |
| Timeline |
| Dug Technology |
| Macquarie Group |
Dug Technology and Macquarie Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dug Technology and Macquarie
The main advantage of trading using opposite Dug Technology and Macquarie positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dug Technology position performs unexpectedly, Macquarie 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 will offset losses from the drop in Macquarie's long position.| Dug Technology vs. Viva Leisure | Dug Technology vs. Homeco Daily Needs | Dug Technology vs. Epsilon Healthcare | Dug Technology vs. Fisher Paykel Healthcare |
| Macquarie vs. Advanced Braking Technology | Macquarie vs. Mach7 Technologies | Macquarie vs. Dug Technology | Macquarie vs. Anteris Technologies |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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