Correlation Between Macquarie Bank and Australia
Can any of the company-specific risk be diversified away by investing in both Macquarie Bank and Australia 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 Australia 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 Australia and New, you can compare the effects of market volatilities on Macquarie Bank and Australia 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 Australia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Macquarie Bank and Australia.
Diversification Opportunities for Macquarie Bank and Australia
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Macquarie and Australia is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Macquarie Bank Limited and Australia and New in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Australia and New 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 Australia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Australia and New has no effect on the direction of Macquarie Bank i.e., Macquarie Bank and Australia go up and down completely randomly.
Pair Corralation between Macquarie Bank and Australia
If you would invest 9,154 in Macquarie Bank Limited on October 9, 2024 and sell it today you would earn a total of 1,261 from holding Macquarie Bank Limited or generate 13.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.2% |
| Values | Daily Returns |
Macquarie Bank Limited vs. Australia and New
Performance |
| Timeline |
| Macquarie Bank |
| Australia and New |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Insignificant
Macquarie Bank and Australia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Macquarie Bank and Australia
The main advantage of trading using opposite Macquarie Bank and Australia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Macquarie Bank position performs unexpectedly, Australia 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 Australia will offset losses from the drop in Australia's long position.| Macquarie Bank vs. Queste Communications | Macquarie Bank vs. Maggie Beer Holdings | Macquarie Bank vs. Argo Investments | Macquarie Bank vs. Hutchison Telecommunications |
| Australia vs. Apiam Animal Health | Australia vs. Event Hospitality and | Australia vs. EVE Health Group | Australia vs. Health and Plant |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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