Correlation Between Macquarie Bank and Appen
Can any of the company-specific risk be diversified away by investing in both Macquarie Bank and Appen 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 Bank and Appen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Macquarie Bank Ltd and Appen, you can compare the effects of market volatilities on Macquarie Bank and Appen 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 Bank with a short position of Appen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Macquarie Bank and Appen.
Diversification Opportunities for Macquarie Bank and Appen
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Macquarie and Appen is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Macquarie Bank Ltd and Appen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Appen and Macquarie Bank 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 Bank Ltd are associated (or correlated) with Appen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Appen has no effect on the direction of Macquarie Bank i.e., Macquarie Bank and Appen go up and down completely randomly.
Pair Corralation between Macquarie Bank and Appen
If you would invest 150.00 in Appen on September 12, 2024 and sell it today you would earn a total of 67.00 from holding Appen or generate 44.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Macquarie Bank Ltd vs. Appen
Performance |
| Timeline |
| Macquarie Bank |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Modest
| Appen |
Macquarie Bank and Appen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Macquarie Bank and Appen
The main advantage of trading using opposite Macquarie Bank and Appen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Macquarie Bank position performs unexpectedly, Appen 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 Appen will offset losses from the drop in Appen's long position.| Macquarie Bank vs. Auctus Alternative Investments | Macquarie Bank vs. Alternative Investment Trust | Macquarie Bank vs. Ainsworth Game Technology | Macquarie Bank vs. Charter Hall Retail |
| Appen vs. WiseTech Global Limited | Appen vs. Farm Pride Foods | Appen vs. MetalsGrove Mining | Appen vs. Black Rock 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |