Correlation Between Macquarie and Imricor Medical
Can any of the company-specific risk be diversified away by investing in both Macquarie and Imricor Medical 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 Imricor Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Macquarie Group and Imricor Medical Systems, you can compare the effects of market volatilities on Macquarie and Imricor Medical 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 Imricor Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Macquarie and Imricor Medical.
Diversification Opportunities for Macquarie and Imricor Medical
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Macquarie and Imricor is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Macquarie Group and Imricor Medical Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Imricor Medical Systems 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 Imricor Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Imricor Medical Systems has no effect on the direction of Macquarie i.e., Macquarie and Imricor Medical go up and down completely randomly.
Pair Corralation between Macquarie and Imricor Medical
Assuming the 90 days trading horizon Macquarie is expected to generate 4.63 times less return on investment than Imricor Medical. But when comparing it to its historical volatility, Macquarie Group is 4.68 times less risky than Imricor Medical. It trades about 0.07 of its potential returns per unit of risk. Imricor Medical Systems is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 38.00 in Imricor Medical Systems on September 13, 2024 and sell it today you would earn a total of 76.00 from holding Imricor Medical Systems or generate 200.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Macquarie Group vs. Imricor Medical Systems
Performance |
| Timeline |
| Macquarie Group |
| Imricor Medical Systems |
Macquarie and Imricor Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Macquarie and Imricor Medical
The main advantage of trading using opposite Macquarie and Imricor Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Macquarie position performs unexpectedly, Imricor Medical 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 Imricor Medical will offset losses from the drop in Imricor Medical's long position.| Macquarie vs. Black Rock Mining | Macquarie vs. MetalsGrove Mining | Macquarie vs. Microequities Asset Management | Macquarie vs. Australian Unity Office |
| Imricor Medical vs. Macquarie Group | Imricor Medical vs. Rio Tinto | Imricor Medical vs. CSL | Imricor Medical vs. Commonwealth Bank of |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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