Correlation Between Macmahon Holdings and Advantage Solutions
Can any of the company-specific risk be diversified away by investing in both Macmahon Holdings and Advantage Solutions 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 Macmahon Holdings and Advantage Solutions into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Macmahon Holdings Limited and Advantage Solutions, you can compare the effects of market volatilities on Macmahon Holdings and Advantage Solutions 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 Macmahon Holdings with a short position of Advantage Solutions. Check out your portfolio center. Please also check ongoing floating volatility patterns of Macmahon Holdings and Advantage Solutions.
Diversification Opportunities for Macmahon Holdings and Advantage Solutions
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Macmahon and Advantage is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Macmahon Holdings Limited and Advantage Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advantage Solutions and Macmahon Holdings 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 Macmahon Holdings Limited are associated (or correlated) with Advantage Solutions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advantage Solutions has no effect on the direction of Macmahon Holdings i.e., Macmahon Holdings and Advantage Solutions go up and down completely randomly.
Pair Corralation between Macmahon Holdings and Advantage Solutions
If you would invest 25.00 in Macmahon Holdings Limited on September 4, 2024 and sell it today you would earn a total of 0.00 from holding Macmahon Holdings Limited or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
Macmahon Holdings Limited vs. Advantage Solutions
Performance |
| Timeline |
| Macmahon Holdings |
| Advantage Solutions |
Macmahon Holdings and Advantage Solutions Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Macmahon Holdings and Advantage Solutions
The main advantage of trading using opposite Macmahon Holdings and Advantage Solutions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Macmahon Holdings position performs unexpectedly, Advantage Solutions 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 Advantage Solutions will offset losses from the drop in Advantage Solutions' long position.| Macmahon Holdings vs. IPG Photonics | Macmahon Holdings vs. Coty Inc | Macmahon Holdings vs. Micron Technology | Macmahon Holdings vs. Elmos Semiconductor SE |
| Advantage Solutions vs. CannBioRx Life Sciences | Advantage Solutions vs. GCM Grosvenor | Advantage Solutions vs. CuriosityStream |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |