Correlation Between Macmahon Holdings and Vendetta Mining
Can any of the company-specific risk be diversified away by investing in both Macmahon Holdings and Vendetta Mining 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 Vendetta Mining 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 Vendetta Mining Corp, you can compare the effects of market volatilities on Macmahon Holdings and Vendetta Mining 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 Vendetta Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Macmahon Holdings and Vendetta Mining.
Diversification Opportunities for Macmahon Holdings and Vendetta Mining
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Macmahon and Vendetta is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Macmahon Holdings Limited and Vendetta Mining Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vendetta Mining Corp 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 Vendetta Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vendetta Mining Corp has no effect on the direction of Macmahon Holdings i.e., Macmahon Holdings and Vendetta Mining go up and down completely randomly.
Pair Corralation between Macmahon Holdings and Vendetta Mining
If you would invest 0.74 in Vendetta Mining Corp on August 25, 2024 and sell it today you would earn a total of 0.02 from holding Vendetta Mining Corp or generate 2.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Macmahon Holdings Limited vs. Vendetta Mining Corp
Performance |
| Timeline |
| Macmahon Holdings |
| Vendetta Mining Corp |
Macmahon Holdings and Vendetta Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Macmahon Holdings and Vendetta Mining
The main advantage of trading using opposite Macmahon Holdings and Vendetta Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Macmahon Holdings position performs unexpectedly, Vendetta Mining 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 Vendetta Mining will offset losses from the drop in Vendetta Mining's long position.| Macmahon Holdings vs. Celsius Holdings | Macmahon Holdings vs. Diageo PLC ADR | Macmahon Holdings vs. Oatly Group AB | Macmahon Holdings vs. Shake Shack |
| Vendetta Mining vs. Ascendant Resources | Vendetta Mining vs. Cantex Mine Development | Vendetta Mining vs. Amarc Resources | Vendetta Mining vs. Sterling Metals Corp |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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