Correlation Between Macquarie Bank and Aumake
Can any of the company-specific risk be diversified away by investing in both Macquarie Bank and Aumake 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 Aumake 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 Aumake, you can compare the effects of market volatilities on Macquarie Bank and Aumake 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 Aumake. Check out your portfolio center. Please also check ongoing floating volatility patterns of Macquarie Bank and Aumake.
Diversification Opportunities for Macquarie Bank and Aumake
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Macquarie and Aumake is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Macquarie Bank Limited and Aumake in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aumake 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 Aumake. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aumake has no effect on the direction of Macquarie Bank i.e., Macquarie Bank and Aumake go up and down completely randomly.
Pair Corralation between Macquarie Bank and Aumake
Assuming the 90 days trading horizon Macquarie Bank Limited is expected to generate 0.05 times more return on investment than Aumake. However, Macquarie Bank Limited is 19.92 times less risky than Aumake. It trades about 0.02 of its potential returns per unit of risk. Aumake is currently generating about -0.01 per unit of risk. If you would invest 10,242 in Macquarie Bank Limited on September 5, 2024 and sell it today you would earn a total of 54.00 from holding Macquarie Bank Limited or generate 0.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 97.67% |
| Values | Daily Returns |
Macquarie Bank Limited vs. Aumake
Performance |
| Timeline |
| Macquarie Bank |
| Aumake |
Macquarie Bank and Aumake Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Macquarie Bank and Aumake
The main advantage of trading using opposite Macquarie Bank and Aumake positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Macquarie Bank position performs unexpectedly, Aumake 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 Aumake will offset losses from the drop in Aumake's long position.| Macquarie Bank vs. NEWMONT PORATION CDI | Macquarie Bank vs. Ssr Mining | Macquarie Bank vs. Ora Banda Mining | Macquarie Bank vs. Black Cat Syndicate |
| Aumake vs. Hawsons Iron | Aumake vs. Treasury Wine Estates | Aumake vs. Iron Road | Aumake vs. Macquarie Bank Limited |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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