Correlation Between Macquarie Group and Oneview Healthcare
Can any of the company-specific risk be diversified away by investing in both Macquarie Group and Oneview Healthcare 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 Oneview Healthcare 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 Oneview Healthcare PLC, you can compare the effects of market volatilities on Macquarie Group and Oneview Healthcare 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 Oneview Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Macquarie Group and Oneview Healthcare.
Diversification Opportunities for Macquarie Group and Oneview Healthcare
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Macquarie and Oneview is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Macquarie Group Ltd and Oneview Healthcare PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oneview Healthcare PLC 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 Oneview Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oneview Healthcare PLC has no effect on the direction of Macquarie Group i.e., Macquarie Group and Oneview Healthcare go up and down completely randomly.
Pair Corralation between Macquarie Group and Oneview Healthcare
Assuming the 90 days trading horizon Macquarie Group Ltd is expected to generate 0.16 times more return on investment than Oneview Healthcare. However, Macquarie Group Ltd is 6.18 times less risky than Oneview Healthcare. It trades about 0.07 of its potential returns per unit of risk. Oneview Healthcare PLC is currently generating about -0.32 per unit of risk. If you would invest 10,503 in Macquarie Group Ltd on August 29, 2024 and sell it today you would earn a total of 50.00 from holding Macquarie Group Ltd or generate 0.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Macquarie Group Ltd vs. Oneview Healthcare PLC
Performance |
| Timeline |
| Macquarie Group |
| Oneview Healthcare PLC |
Macquarie Group and Oneview Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Macquarie Group and Oneview Healthcare
The main advantage of trading using opposite Macquarie Group and Oneview Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Macquarie Group position performs unexpectedly, Oneview Healthcare 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 Oneview Healthcare will offset losses from the drop in Oneview Healthcare's long position.| Macquarie Group vs. AMP | Macquarie Group vs. Regal Investment | Macquarie Group vs. REGAL ASIAN INVESTMENTS |
| Oneview Healthcare vs. Accent Resources NL | Oneview Healthcare vs. Hutchison Telecommunications | Oneview Healthcare vs. GO2 People | Oneview Healthcare vs. Pact Group Holdings |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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