Correlation Between Macquarie Technology and Hawsons Iron
Can any of the company-specific risk be diversified away by investing in both Macquarie Technology and Hawsons Iron 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 Hawsons Iron 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 Hawsons Iron, you can compare the effects of market volatilities on Macquarie Technology and Hawsons Iron 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 Hawsons Iron. Check out your portfolio center. Please also check ongoing floating volatility patterns of Macquarie Technology and Hawsons Iron.
Diversification Opportunities for Macquarie Technology and Hawsons Iron
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Macquarie and Hawsons is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Macquarie Technology Group and Hawsons Iron in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hawsons Iron 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 Hawsons Iron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hawsons Iron has no effect on the direction of Macquarie Technology i.e., Macquarie Technology and Hawsons Iron go up and down completely randomly.
Pair Corralation between Macquarie Technology and Hawsons Iron
Assuming the 90 days trading horizon Macquarie Technology Group is expected to generate 0.35 times more return on investment than Hawsons Iron. However, Macquarie Technology Group is 2.84 times less risky than Hawsons Iron. It trades about 0.06 of its potential returns per unit of risk. Hawsons Iron is currently generating about -0.04 per unit of risk. If you would invest 5,454 in Macquarie Technology Group on October 31, 2024 and sell it today you would earn a total of 2,746 from holding Macquarie Technology Group or generate 50.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Macquarie Technology Group vs. Hawsons Iron
Performance |
| Timeline |
| Macquarie Technology |
| Hawsons Iron |
Macquarie Technology and Hawsons Iron Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Macquarie Technology and Hawsons Iron
The main advantage of trading using opposite Macquarie Technology and Hawsons Iron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Macquarie Technology position performs unexpectedly, Hawsons Iron 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 Hawsons Iron will offset losses from the drop in Hawsons Iron's long position.| Macquarie Technology vs. ACDC Metals | Macquarie Technology vs. Sports Entertainment Group | Macquarie Technology vs. Retail Food Group | Macquarie Technology vs. Perseus Mining |
| Hawsons Iron vs. Carlton Investments | Hawsons Iron vs. Black Rock Mining | Hawsons Iron vs. Truscott Mining Corp | Hawsons Iron vs. MetalsGrove Mining |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |