Correlation Between Macquarie Technology and Duketon Mining
Can any of the company-specific risk be diversified away by investing in both Macquarie Technology and Duketon Mining 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 Macquarie Technology and Duketon Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Macquarie Technology Group and Duketon Mining, you can compare the effects of market volatilities on Macquarie Technology and Duketon Mining 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 Macquarie Technology with a short position of Duketon Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Macquarie Technology and Duketon Mining.
Diversification Opportunities for Macquarie Technology and Duketon Mining
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Macquarie and Duketon is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Macquarie Technology Group and Duketon Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Duketon Mining and Macquarie Technology 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 Macquarie Technology Group are associated (or correlated) with Duketon Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Duketon Mining has no effect on the direction of Macquarie Technology i.e., Macquarie Technology and Duketon Mining go up and down completely randomly.
Pair Corralation between Macquarie Technology and Duketon Mining
Assuming the 90 days trading horizon Macquarie Technology Group is expected to generate 0.47 times more return on investment than Duketon Mining. However, Macquarie Technology Group is 2.11 times less risky than Duketon Mining. It trades about 0.15 of its potential returns per unit of risk. Duketon Mining is currently generating about -0.32 per unit of risk. If you would invest 8,583 in Macquarie Technology Group on October 11, 2024 and sell it today you would earn a total of 361.00 from holding Macquarie Technology Group or generate 4.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Macquarie Technology Group vs. Duketon Mining
Performance |
| Timeline |
| Macquarie Technology |
| Duketon Mining |
Macquarie Technology and Duketon Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Macquarie Technology and Duketon Mining
The main advantage of trading using opposite Macquarie Technology and Duketon Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Macquarie Technology position performs unexpectedly, Duketon Mining 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 Duketon Mining will offset losses from the drop in Duketon Mining's long position.| Macquarie Technology vs. WiseTech Global Limited | Macquarie Technology vs. Collins Foods | Macquarie Technology vs. TPG Telecom | Macquarie Technology vs. Beston Global Food |
| Duketon Mining vs. Genetic Technologies | Duketon Mining vs. Macquarie Technology Group | Duketon Mining vs. Maggie Beer Holdings | Duketon Mining vs. Bisalloy Steel 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| CEOs Directory Screen CEOs from public companies around the world |