Correlation Between Graphex Group and Macmahon Holdings
Can any of the company-specific risk be diversified away by investing in both Graphex Group and Macmahon Holdings 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 Graphex Group and Macmahon Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Graphex Group Limited and Macmahon Holdings Limited, you can compare the effects of market volatilities on Graphex Group and Macmahon Holdings 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 Graphex Group with a short position of Macmahon Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Graphex Group and Macmahon Holdings.
Diversification Opportunities for Graphex Group and Macmahon Holdings
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Graphex and Macmahon is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Graphex Group Limited and Macmahon Holdings Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Macmahon Holdings and Graphex Group 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 Graphex Group Limited are associated (or correlated) with Macmahon Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Macmahon Holdings has no effect on the direction of Graphex Group i.e., Graphex Group and Macmahon Holdings go up and down completely randomly.
Pair Corralation between Graphex Group and Macmahon Holdings
Given the investment horizon of 90 days Graphex Group Limited is expected to under-perform the Macmahon Holdings. In addition to that, Graphex Group is 2.1 times more volatile than Macmahon Holdings Limited. It trades about -0.04 of its total potential returns per unit of risk. Macmahon Holdings Limited is currently generating about 0.12 per unit of volatility. If you would invest 11.00 in Macmahon Holdings Limited on September 3, 2024 and sell it today you would earn a total of 14.00 from holding Macmahon Holdings Limited or generate 127.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 82.59% |
| Values | Daily Returns |
Graphex Group Limited vs. Macmahon Holdings Limited
Performance |
| Timeline |
| Graphex Group Limited |
| Macmahon Holdings |
Graphex Group and Macmahon Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Graphex Group and Macmahon Holdings
The main advantage of trading using opposite Graphex Group and Macmahon Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Graphex Group position performs unexpectedly, Macmahon Holdings 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 Macmahon Holdings will offset losses from the drop in Macmahon Holdings' long position.| Graphex Group vs. Leading Edge Materials | Graphex Group vs. Lithium Australia NL | Graphex Group vs. Ardea Resources Limited | Graphex Group vs. Blackstone Minerals |
| Macmahon Holdings vs. Advantage Solutions | Macmahon Holdings vs. Atlas Corp | Macmahon Holdings vs. PureCycle Technologies | Macmahon Holdings vs. WM Technology |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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