Correlation Between Macquarie Group and Auctus Alternative
Can any of the company-specific risk be diversified away by investing in both Macquarie Group and Auctus Alternative 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 Auctus Alternative 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 Auctus Alternative Investments, you can compare the effects of market volatilities on Macquarie Group and Auctus Alternative 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 Auctus Alternative. Check out your portfolio center. Please also check ongoing floating volatility patterns of Macquarie Group and Auctus Alternative.
Diversification Opportunities for Macquarie Group and Auctus Alternative
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Macquarie and Auctus is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Macquarie Group Ltd and Auctus Alternative Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Auctus Alternative 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 Auctus Alternative. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Auctus Alternative has no effect on the direction of Macquarie Group i.e., Macquarie Group and Auctus Alternative go up and down completely randomly.
Pair Corralation between Macquarie Group and Auctus Alternative
Assuming the 90 days trading horizon Macquarie Group Ltd is expected to generate 0.12 times more return on investment than Auctus Alternative. However, Macquarie Group Ltd is 8.15 times less risky than Auctus Alternative. It trades about 0.05 of its potential returns per unit of risk. Auctus Alternative Investments is currently generating about 0.0 per unit of risk. If you would invest 9,368 in Macquarie Group Ltd on September 26, 2024 and sell it today you would earn a total of 1,057 from holding Macquarie Group Ltd or generate 11.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Macquarie Group Ltd vs. Auctus Alternative Investments
Performance |
| Timeline |
| Macquarie Group |
| Auctus Alternative |
Macquarie Group and Auctus Alternative Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Macquarie Group and Auctus Alternative
The main advantage of trading using opposite Macquarie Group and Auctus Alternative positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Macquarie Group position performs unexpectedly, Auctus Alternative 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 Auctus Alternative will offset losses from the drop in Auctus Alternative's long position.| Macquarie Group vs. Dicker Data | Macquarie Group vs. Global Data Centre | Macquarie Group vs. Globe Metals Mining | Macquarie Group vs. ABACUS STORAGE KING |
| Auctus Alternative vs. Aneka Tambang Tbk | Auctus Alternative vs. Macquarie Group | Auctus Alternative vs. Macquarie Group Ltd | Auctus Alternative 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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