Correlation Between Mad Paws and Macquarie
Can any of the company-specific risk be diversified away by investing in both Mad Paws and Macquarie 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 Mad Paws and Macquarie into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mad Paws Holdings and Macquarie Group, you can compare the effects of market volatilities on Mad Paws and Macquarie 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 Mad Paws with a short position of Macquarie. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mad Paws and Macquarie.
Diversification Opportunities for Mad Paws and Macquarie
Pay attention - limited upside
The 3 months correlation between Mad and Macquarie is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Mad Paws Holdings and Macquarie Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Macquarie Group and Mad Paws 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 Mad Paws Holdings are associated (or correlated) with Macquarie. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Macquarie Group has no effect on the direction of Mad Paws i.e., Mad Paws and Macquarie go up and down completely randomly.
Pair Corralation between Mad Paws and Macquarie
If you would invest 17,572 in Macquarie Group on September 14, 2024 and sell it today you would earn a total of 4,985 from holding Macquarie Group or generate 28.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Mad Paws Holdings vs. Macquarie Group
Performance |
| Timeline |
| Mad Paws Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Macquarie Group |
Mad Paws and Macquarie Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mad Paws and Macquarie
The main advantage of trading using opposite Mad Paws and Macquarie positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mad Paws position performs unexpectedly, Macquarie 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 Macquarie will offset losses from the drop in Macquarie's long position.| Mad Paws vs. Genetic Technologies | Mad Paws vs. Legacy Iron Ore | Mad Paws vs. Srj Technologies Group | Mad Paws vs. Aeris Environmental |
| Macquarie vs. Dalaroo Metals | Macquarie vs. Black Rock Mining | Macquarie vs. Stelar Metals | Macquarie vs. Fisher Paykel Healthcare |
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.
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