Correlation Between Macquarie Bank and Austco Healthcare
Can any of the company-specific risk be diversified away by investing in both Macquarie Bank and Austco Healthcare 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 Austco Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Macquarie Bank Limited and Austco Healthcare, you can compare the effects of market volatilities on Macquarie Bank and Austco Healthcare 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 Austco Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Macquarie Bank and Austco Healthcare.
Diversification Opportunities for Macquarie Bank and Austco Healthcare
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Macquarie and Austco is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Macquarie Bank Limited and Austco Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Austco Healthcare 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 Limited are associated (or correlated) with Austco Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Austco Healthcare has no effect on the direction of Macquarie Bank i.e., Macquarie Bank and Austco Healthcare go up and down completely randomly.
Pair Corralation between Macquarie Bank and Austco Healthcare
Assuming the 90 days trading horizon Macquarie Bank Limited is expected to generate 0.34 times more return on investment than Austco Healthcare. However, Macquarie Bank Limited is 2.95 times less risky than Austco Healthcare. It trades about 0.03 of its potential returns per unit of risk. Austco Healthcare is currently generating about -0.08 per unit of risk. If you would invest 10,359 in Macquarie Bank Limited on September 3, 2024 and sell it today you would earn a total of 42.00 from holding Macquarie Bank Limited or generate 0.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Macquarie Bank Limited vs. Austco Healthcare
Performance |
| Timeline |
| Macquarie Bank |
| Austco Healthcare |
Macquarie Bank and Austco Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Macquarie Bank and Austco Healthcare
The main advantage of trading using opposite Macquarie Bank and Austco Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Macquarie Bank position performs unexpectedly, Austco Healthcare 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 Austco Healthcare will offset losses from the drop in Austco Healthcare's long position.| Macquarie Bank vs. NEWMONT PORATION CDI | Macquarie Bank vs. Ora Banda Mining | Macquarie Bank vs. Polymetals Resources | Macquarie Bank vs. Champion Iron |
| Austco Healthcare vs. TTG Fintech | Austco Healthcare vs. Land Homes Group | Austco Healthcare vs. Regis Healthcare | Austco Healthcare vs. Horseshoe 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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |