Correlation Between Macquarie Technology and Ras Technology
Can any of the company-specific risk be diversified away by investing in both Macquarie Technology and Ras Technology 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 Ras Technology 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 Ras Technology Holdings, you can compare the effects of market volatilities on Macquarie Technology and Ras Technology 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 Ras Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Macquarie Technology and Ras Technology.
Diversification Opportunities for Macquarie Technology and Ras Technology
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Macquarie and Ras is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Macquarie Technology Group and Ras Technology Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ras Technology Holdings 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 Ras Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ras Technology Holdings has no effect on the direction of Macquarie Technology i.e., Macquarie Technology and Ras Technology go up and down completely randomly.
Pair Corralation between Macquarie Technology and Ras Technology
Assuming the 90 days trading horizon Macquarie Technology is expected to generate 2.18 times less return on investment than Ras Technology. But when comparing it to its historical volatility, Macquarie Technology Group is 2.0 times less risky than Ras Technology. It trades about 0.06 of its potential returns per unit of risk. Ras Technology Holdings is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 49.00 in Ras Technology Holdings on August 31, 2024 and sell it today you would earn a total of 47.00 from holding Ras Technology Holdings or generate 95.92% 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. Ras Technology Holdings
Performance |
| Timeline |
| Macquarie Technology |
| Ras Technology Holdings |
Macquarie Technology and Ras Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Macquarie Technology and Ras Technology
The main advantage of trading using opposite Macquarie Technology and Ras Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Macquarie Technology position performs unexpectedly, Ras Technology 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 Ras Technology will offset losses from the drop in Ras Technology's long position.| Macquarie Technology vs. Hansen Technologies | Macquarie Technology vs. Neurotech International | Macquarie Technology vs. Richmond Vanadium Technology | Macquarie Technology vs. Genetic Technologies |
| Ras Technology vs. Infomedia | Ras Technology vs. AiMedia Technologies | Ras Technology vs. Black Rock Mining | Ras Technology vs. DY6 Metals |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |