Correlation Between Macmahon Holdings and CITIC Resources
Can any of the company-specific risk be diversified away by investing in both Macmahon Holdings and CITIC Resources 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 CITIC Resources 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 CITIC Resources Holdings, you can compare the effects of market volatilities on Macmahon Holdings and CITIC Resources 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 CITIC Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Macmahon Holdings and CITIC Resources.
Diversification Opportunities for Macmahon Holdings and CITIC Resources
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Macmahon and CITIC is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Macmahon Holdings Limited and CITIC Resources Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CITIC Resources Holdings 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 CITIC Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CITIC Resources Holdings has no effect on the direction of Macmahon Holdings i.e., Macmahon Holdings and CITIC Resources go up and down completely randomly.
Pair Corralation between Macmahon Holdings and CITIC Resources
If you would invest 11.00 in Macmahon Holdings Limited on September 12, 2024 and sell it today you would earn a total of 14.00 from holding Macmahon Holdings Limited or generate 127.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 0.48% |
| Values | Daily Returns |
Macmahon Holdings Limited vs. CITIC Resources Holdings
Performance |
| Timeline |
| Macmahon Holdings |
| CITIC Resources Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Macmahon Holdings and CITIC Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Macmahon Holdings and CITIC Resources
The main advantage of trading using opposite Macmahon Holdings and CITIC Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Macmahon Holdings position performs unexpectedly, CITIC Resources 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 CITIC Resources will offset losses from the drop in CITIC Resources' long position.| Macmahon Holdings vs. Advantage Solutions | Macmahon Holdings vs. Atlas Corp | Macmahon Holdings vs. PureCycle Technologies | Macmahon Holdings vs. WM Technology |
| CITIC Resources vs. Sherritt International | CITIC Resources vs. Metals X Limited | CITIC Resources vs. Interra Copper Corp | CITIC Resources vs. Anglo American PLC |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |