Correlation Between Macquarie and TTG Fintech
Can any of the company-specific risk be diversified away by investing in both Macquarie and TTG Fintech 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 Macquarie and TTG Fintech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Macquarie Group and TTG Fintech, you can compare the effects of market volatilities on Macquarie and TTG Fintech 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 Macquarie with a short position of TTG Fintech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Macquarie and TTG Fintech.
Diversification Opportunities for Macquarie and TTG Fintech
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Macquarie and TTG is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Macquarie Group and TTG Fintech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TTG Fintech and Macquarie 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 Macquarie Group are associated (or correlated) with TTG Fintech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TTG Fintech has no effect on the direction of Macquarie i.e., Macquarie and TTG Fintech go up and down completely randomly.
Pair Corralation between Macquarie and TTG Fintech
If you would invest 22,874 in Macquarie Group on August 31, 2024 and sell it today you would earn a total of 237.00 from holding Macquarie Group or generate 1.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Macquarie Group vs. TTG Fintech
Performance |
| Timeline |
| Macquarie Group |
| TTG Fintech |
Macquarie and TTG Fintech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Macquarie and TTG Fintech
The main advantage of trading using opposite Macquarie and TTG Fintech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Macquarie position performs unexpectedly, TTG Fintech 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 TTG Fintech will offset losses from the drop in TTG Fintech's long position.| Macquarie vs. Finexia Financial Group | Macquarie vs. Macquarie Bank Limited | Macquarie vs. Pioneer Credit | Macquarie vs. Talisman Mining |
| TTG Fintech vs. Aneka Tambang Tbk | TTG Fintech vs. Macquarie Group | TTG Fintech vs. Challenger | TTG Fintech vs. BHP Group Limited |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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