Correlation Between Macquarie and Global Data
Can any of the company-specific risk be diversified away by investing in both Macquarie and Global Data 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 Global Data into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Macquarie Group and Global Data Centre, you can compare the effects of market volatilities on Macquarie and Global Data 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 Global Data. Check out your portfolio center. Please also check ongoing floating volatility patterns of Macquarie and Global Data.
Diversification Opportunities for Macquarie and Global Data
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Macquarie and Global is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Macquarie Group and Global Data Centre in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Data Centre 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 Global Data. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Data Centre has no effect on the direction of Macquarie i.e., Macquarie and Global Data go up and down completely randomly.
Pair Corralation between Macquarie and Global Data
If you would invest 143.00 in Global Data Centre on September 24, 2024 and sell it today you would earn a total of 0.00 from holding Global Data Centre or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Macquarie Group vs. Global Data Centre
Performance |
| Timeline |
| Macquarie Group |
| Global Data Centre |
Macquarie and Global Data Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Macquarie and Global Data
The main advantage of trading using opposite Macquarie and Global Data positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Macquarie position performs unexpectedly, Global Data 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 Global Data will offset losses from the drop in Global Data's long position.| Macquarie vs. Advanced Braking Technology | Macquarie vs. Home Consortium | Macquarie vs. Genetic Technologies | Macquarie vs. RLF AgTech |
| Global Data vs. Aneka Tambang Tbk | Global Data vs. Macquarie Group | Global Data vs. Macquarie Group Ltd | Global Data vs. Challenger |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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