Correlation Between Macquarie Group and A1 Investments
Can any of the company-specific risk be diversified away by investing in both Macquarie Group and A1 Investments 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 A1 Investments 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 A1 Investments Resources, you can compare the effects of market volatilities on Macquarie Group and A1 Investments 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 A1 Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Macquarie Group and A1 Investments.
Diversification Opportunities for Macquarie Group and A1 Investments
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Macquarie and AYI is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Macquarie Group Ltd and A1 Investments Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on A1 Investments Resources 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 A1 Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of A1 Investments Resources has no effect on the direction of Macquarie Group i.e., Macquarie Group and A1 Investments go up and down completely randomly.
Pair Corralation between Macquarie Group and A1 Investments
Assuming the 90 days trading horizon Macquarie Group is expected to generate 4.5 times less return on investment than A1 Investments. But when comparing it to its historical volatility, Macquarie Group Ltd is 12.19 times less risky than A1 Investments. It trades about 0.05 of its potential returns per unit of risk. A1 Investments Resources is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 0.10 in A1 Investments Resources on September 26, 2024 and sell it today you would earn a total of 0.00 from holding A1 Investments Resources or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Macquarie Group Ltd vs. A1 Investments Resources
Performance |
| Timeline |
| Macquarie Group |
| A1 Investments Resources |
Macquarie Group and A1 Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Macquarie Group and A1 Investments
The main advantage of trading using opposite Macquarie Group and A1 Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Macquarie Group position performs unexpectedly, A1 Investments 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 A1 Investments will offset losses from the drop in A1 Investments' 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 |
| A1 Investments vs. Aneka Tambang Tbk | A1 Investments vs. Macquarie Group | A1 Investments vs. Macquarie Group Ltd | A1 Investments 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |