Correlation Between Genetic Technologies and Macquarie Bank
Can any of the company-specific risk be diversified away by investing in both Genetic Technologies 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 Genetic Technologies and Macquarie Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Genetic Technologies and Macquarie Bank Limited, you can compare the effects of market volatilities on Genetic Technologies 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 Genetic Technologies with a short position of Macquarie Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genetic Technologies and Macquarie Bank.
Diversification Opportunities for Genetic Technologies and Macquarie Bank
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Genetic and Macquarie is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Genetic Technologies and Macquarie Bank Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Macquarie Bank and Genetic Technologies 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 Genetic Technologies 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 Genetic Technologies i.e., Genetic Technologies and Macquarie Bank go up and down completely randomly.
Pair Corralation between Genetic Technologies and Macquarie Bank
If you would invest 10,298 in Macquarie Bank Limited on October 15, 2024 and sell it today you would earn a total of 107.00 from holding Macquarie Bank Limited or generate 1.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Genetic Technologies vs. Macquarie Bank Limited
Performance |
| Timeline |
| Genetic Technologies |
| Macquarie Bank |
Genetic Technologies and Macquarie Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genetic Technologies and Macquarie Bank
The main advantage of trading using opposite Genetic Technologies and Macquarie Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genetic Technologies 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.| Genetic Technologies vs. Ecofibre | Genetic Technologies vs. iShares Global Healthcare | Genetic Technologies vs. Adriatic Metals Plc | Genetic Technologies vs. Australian Dairy Farms |
| Macquarie Bank vs. RLF AgTech | Macquarie Bank vs. Advanced Braking Technology | Macquarie Bank vs. Genetic Technologies | Macquarie Bank vs. Mirrabooka Investments |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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