Correlation Between Macquarie Bank and Land Homes
Can any of the company-specific risk be diversified away by investing in both Macquarie Bank and Land Homes 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 Land Homes 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 Land Homes Group, you can compare the effects of market volatilities on Macquarie Bank and Land Homes 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 Land Homes. Check out your portfolio center. Please also check ongoing floating volatility patterns of Macquarie Bank and Land Homes.
Diversification Opportunities for Macquarie Bank and Land Homes
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Macquarie and Land is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Macquarie Bank Limited and Land Homes Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Land Homes Group 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 Land Homes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Land Homes Group has no effect on the direction of Macquarie Bank i.e., Macquarie Bank and Land Homes go up and down completely randomly.
Pair Corralation between Macquarie Bank and Land Homes
If you would invest 0.70 in Land Homes Group on August 29, 2024 and sell it today you would earn a total of 0.00 from holding Land Homes Group or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Macquarie Bank Limited vs. Land Homes Group
Performance |
| Timeline |
| Macquarie Bank |
| Land Homes Group |
Macquarie Bank and Land Homes Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Macquarie Bank and Land Homes
The main advantage of trading using opposite Macquarie Bank and Land Homes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Macquarie Bank position performs unexpectedly, Land Homes 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 Land Homes will offset losses from the drop in Land Homes' long position.| Macquarie Bank vs. Ssr Mining | Macquarie Bank vs. Ora Banda Mining | Macquarie Bank vs. Black Cat Syndicate | Macquarie Bank vs. Champion Iron |
| Land Homes vs. Australian Unity Office | Land Homes vs. Champion Iron | Land Homes vs. Ridley | Land Homes vs. Peel 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 CEOs Directory module to screen CEOs from public companies around the world.
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