Correlation Between Hyster Yale and Macquarie Group
Can any of the company-specific risk be diversified away by investing in both Hyster Yale 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 Hyster Yale and Macquarie Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hyster Yale Materials Handling and Macquarie Group Limited, you can compare the effects of market volatilities on Hyster Yale 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 Hyster Yale with a short position of Macquarie Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hyster Yale and Macquarie Group.
Diversification Opportunities for Hyster Yale and Macquarie Group
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hyster and Macquarie is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Hyster Yale Materials Handling and Macquarie Group Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Macquarie Group and Hyster Yale 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 Hyster Yale Materials Handling 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 Hyster Yale i.e., Hyster Yale and Macquarie Group go up and down completely randomly.
Pair Corralation between Hyster Yale and Macquarie Group
Assuming the 90 days trading horizon Hyster Yale is expected to generate 1.17 times less return on investment than Macquarie Group. In addition to that, Hyster Yale is 1.0 times more volatile than Macquarie Group Limited. It trades about 0.21 of its total potential returns per unit of risk. Macquarie Group Limited is currently generating about 0.25 per unit of volatility. If you would invest 13,476 in Macquarie Group Limited on November 7, 2024 and sell it today you would earn a total of 948.00 from holding Macquarie Group Limited or generate 7.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hyster Yale Materials Handling vs. Macquarie Group Limited
Performance |
| Timeline |
| Hyster Yale Materials |
| Macquarie Group |
Hyster Yale and Macquarie Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hyster Yale and Macquarie Group
The main advantage of trading using opposite Hyster Yale and Macquarie Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hyster Yale 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.| Hyster Yale vs. AB Volvo | Hyster Yale vs. PACCAR Inc | Hyster Yale vs. KION Group AG | Hyster Yale vs. Sinotruk Limited |
| Macquarie Group vs. Insurance Australia Group | Macquarie Group vs. Reinsurance Group of | Macquarie Group vs. SBI Insurance Group | Macquarie Group vs. United Natural Foods |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Stocks Directory Find actively traded stocks across global markets |