Correlation Between EVE Health and Macquarie Bank
Can any of the company-specific risk be diversified away by investing in both EVE Health and Macquarie Bank 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 EVE Health and Macquarie Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EVE Health Group and Macquarie Bank Limited, you can compare the effects of market volatilities on EVE Health and Macquarie Bank 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 EVE Health with a short position of Macquarie Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of EVE Health and Macquarie Bank.
Diversification Opportunities for EVE Health and Macquarie Bank
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between EVE and Macquarie is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding EVE Health Group and Macquarie Bank Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Macquarie Bank and EVE Health 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 EVE Health Group are associated (or correlated) with Macquarie Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Macquarie Bank has no effect on the direction of EVE Health i.e., EVE Health and Macquarie Bank go up and down completely randomly.
Pair Corralation between EVE Health and Macquarie Bank
If you would invest 9,937 in Macquarie Bank Limited on September 3, 2024 and sell it today you would earn a total of 464.00 from holding Macquarie Bank Limited or generate 4.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
EVE Health Group vs. Macquarie Bank Limited
Performance |
| Timeline |
| EVE Health Group |
| Macquarie Bank |
EVE Health and Macquarie Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EVE Health and Macquarie Bank
The main advantage of trading using opposite EVE Health and Macquarie Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EVE Health position performs unexpectedly, Macquarie Bank 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 Bank will offset losses from the drop in Macquarie Bank's long position.The idea behind EVE Health Group and Macquarie Bank Limited pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Macquarie Bank vs. NEWMONT PORATION CDI | Macquarie Bank vs. Ora Banda Mining | Macquarie Bank vs. Polymetals Resources | Macquarie Bank vs. Champion Iron |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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