Correlation Between Integral Diagnostics and Macquarie
Can any of the company-specific risk be diversified away by investing in both Integral Diagnostics 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 Integral Diagnostics and Macquarie into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Integral Diagnostics and Macquarie Group, you can compare the effects of market volatilities on Integral Diagnostics 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 Integral Diagnostics with a short position of Macquarie. Check out your portfolio center. Please also check ongoing floating volatility patterns of Integral Diagnostics and Macquarie.
Diversification Opportunities for Integral Diagnostics and Macquarie
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Integral and Macquarie is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Integral Diagnostics and Macquarie Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Macquarie Group and Integral Diagnostics 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 Integral Diagnostics 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 Integral Diagnostics i.e., Integral Diagnostics and Macquarie go up and down completely randomly.
Pair Corralation between Integral Diagnostics and Macquarie
Assuming the 90 days trading horizon Integral Diagnostics is expected to generate 2.76 times less return on investment than Macquarie. In addition to that, Integral Diagnostics is 2.07 times more volatile than Macquarie Group. It trades about 0.01 of its total potential returns per unit of risk. Macquarie Group is currently generating about 0.07 per unit of volatility. If you would invest 15,965 in Macquarie Group on September 5, 2024 and sell it today you would earn a total of 7,398 from holding Macquarie Group or generate 46.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Integral Diagnostics vs. Macquarie Group
Performance |
| Timeline |
| Integral Diagnostics |
| Macquarie Group |
Integral Diagnostics and Macquarie Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Integral Diagnostics and Macquarie
The main advantage of trading using opposite Integral Diagnostics and Macquarie positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Integral Diagnostics 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.| Integral Diagnostics vs. Macquarie Group | Integral Diagnostics vs. Macquarie Group Ltd | Integral Diagnostics vs. Commonwealth Bank | Integral Diagnostics vs. Rio Tinto |
| Macquarie vs. Dug Technology | Macquarie vs. Qbe Insurance Group | Macquarie vs. BSP Financial Group | Macquarie vs. Magellan Financial Group |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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