Correlation Between Macquarie Group and Atomos
Can any of the company-specific risk be diversified away by investing in both Macquarie Group and Atomos 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 Group and Atomos into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Macquarie Group Ltd and Atomos, you can compare the effects of market volatilities on Macquarie Group and Atomos 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 Group with a short position of Atomos. Check out your portfolio center. Please also check ongoing floating volatility patterns of Macquarie Group and Atomos.
Diversification Opportunities for Macquarie Group and Atomos
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Macquarie and Atomos is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Macquarie Group Ltd and Atomos in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atomos and Macquarie Group 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 Ltd are associated (or correlated) with Atomos. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atomos has no effect on the direction of Macquarie Group i.e., Macquarie Group and Atomos go up and down completely randomly.
Pair Corralation between Macquarie Group and Atomos
Assuming the 90 days trading horizon Macquarie Group Ltd is expected to generate 0.08 times more return on investment than Atomos. However, Macquarie Group Ltd is 12.14 times less risky than Atomos. It trades about 0.26 of its potential returns per unit of risk. Atomos is currently generating about -0.51 per unit of risk. If you would invest 10,327 in Macquarie Group Ltd on September 2, 2024 and sell it today you would earn a total of 263.00 from holding Macquarie Group Ltd or generate 2.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Macquarie Group Ltd vs. Atomos
Performance |
| Timeline |
| Macquarie Group |
| Atomos |
Macquarie Group and Atomos Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Macquarie Group and Atomos
The main advantage of trading using opposite Macquarie Group and Atomos positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Macquarie Group position performs unexpectedly, Atomos 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 Atomos will offset losses from the drop in Atomos' long position.| Macquarie Group vs. Richmond Vanadium Technology | Macquarie Group vs. Genetic Technologies | Macquarie Group vs. Alto Metals | Macquarie Group vs. EMvision Medical Devices |
| Atomos vs. Audio Pixels Holdings | Atomos vs. Norwest Minerals | Atomos vs. Lindian Resources | Atomos vs. Resource Base |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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