Correlation Between Macquarie Group and Pengana Private
Can any of the company-specific risk be diversified away by investing in both Macquarie Group and Pengana Private 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 Pengana Private 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 Pengana Private Equity, you can compare the effects of market volatilities on Macquarie Group and Pengana Private 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 Pengana Private. Check out your portfolio center. Please also check ongoing floating volatility patterns of Macquarie Group and Pengana Private.
Diversification Opportunities for Macquarie Group and Pengana Private
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Macquarie and Pengana is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Macquarie Group Ltd and Pengana Private Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pengana Private Equity 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 Pengana Private. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pengana Private Equity has no effect on the direction of Macquarie Group i.e., Macquarie Group and Pengana Private go up and down completely randomly.
Pair Corralation between Macquarie Group and Pengana Private
Assuming the 90 days trading horizon Macquarie Group Ltd is expected to generate 0.35 times more return on investment than Pengana Private. However, Macquarie Group Ltd is 2.82 times less risky than Pengana Private. It trades about 0.27 of its potential returns per unit of risk. Pengana Private Equity is currently generating about -0.28 per unit of risk. If you would invest 10,309 in Macquarie Group Ltd on September 1, 2024 and sell it today you would earn a total of 281.00 from holding Macquarie Group Ltd or generate 2.73% 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. Pengana Private Equity
Performance |
| Timeline |
| Macquarie Group |
| Pengana Private Equity |
Macquarie Group and Pengana Private Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Macquarie Group and Pengana Private
The main advantage of trading using opposite Macquarie Group and Pengana Private positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Macquarie Group position performs unexpectedly, Pengana Private 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 Pengana Private will offset losses from the drop in Pengana Private's long position.| Macquarie Group vs. Premier Investments | Macquarie Group vs. Carlton Investments | Macquarie Group vs. Retail Food Group | Macquarie Group vs. Carnegie Clean Energy |
| Pengana Private vs. Queste Communications | Pengana Private vs. Computershare | Pengana Private vs. Australian Unity Office | Pengana Private vs. Carawine Resources Limited |
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 Channel module to use Commodity Channel Index to analyze current equity momentum.
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