Correlation Between Macmahon Holdings and Chemours
Can any of the company-specific risk be diversified away by investing in both Macmahon Holdings and Chemours 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 Chemours 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 Chemours Co, you can compare the effects of market volatilities on Macmahon Holdings and Chemours 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 Chemours. Check out your portfolio center. Please also check ongoing floating volatility patterns of Macmahon Holdings and Chemours.
Diversification Opportunities for Macmahon Holdings and Chemours
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Macmahon and Chemours is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Macmahon Holdings Limited and Chemours Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chemours 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 Chemours. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chemours has no effect on the direction of Macmahon Holdings i.e., Macmahon Holdings and Chemours go up and down completely randomly.
Pair Corralation between Macmahon Holdings and Chemours
If you would invest 25.00 in Macmahon Holdings Limited on September 18, 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 | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Macmahon Holdings Limited vs. Chemours Co
Performance |
| Timeline |
| Macmahon Holdings |
| Chemours |
Macmahon Holdings and Chemours Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Macmahon Holdings and Chemours
The main advantage of trading using opposite Macmahon Holdings and Chemours positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Macmahon Holdings position performs unexpectedly, Chemours 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 Chemours will offset losses from the drop in Chemours' long position.| Macmahon Holdings vs. Chemours Co | Macmahon Holdings vs. Axalta Coating Systems | Macmahon Holdings vs. The Mosaic | Macmahon Holdings vs. Luxfer Holdings PLC |
| Chemours vs. Olin Corporation | Chemours vs. Cabot | Chemours vs. Kronos Worldwide | Chemours vs. LyondellBasell Industries NV |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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