Correlation Between Macquarie Group and Playside Studios
Can any of the company-specific risk be diversified away by investing in both Macquarie Group and Playside Studios 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 Playside Studios 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 Playside Studios, you can compare the effects of market volatilities on Macquarie Group and Playside Studios 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 Playside Studios. Check out your portfolio center. Please also check ongoing floating volatility patterns of Macquarie Group and Playside Studios.
Diversification Opportunities for Macquarie Group and Playside Studios
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Macquarie and Playside is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Macquarie Group Ltd and Playside Studios in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Playside Studios 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 Playside Studios. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Playside Studios has no effect on the direction of Macquarie Group i.e., Macquarie Group and Playside Studios go up and down completely randomly.
Pair Corralation between Macquarie Group and Playside Studios
Assuming the 90 days trading horizon Macquarie Group Ltd is expected to generate 0.08 times more return on investment than Playside Studios. However, Macquarie Group Ltd is 11.79 times less risky than Playside Studios. It trades about 0.06 of its potential returns per unit of risk. Playside Studios is currently generating about 0.0 per unit of risk. If you would invest 9,341 in Macquarie Group Ltd on November 5, 2024 and sell it today you would earn a total of 1,109 from holding Macquarie Group Ltd or generate 11.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Macquarie Group Ltd vs. Playside Studios
Performance |
| Timeline |
| Macquarie Group |
| Playside Studios |
Macquarie Group and Playside Studios Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Macquarie Group and Playside Studios
The main advantage of trading using opposite Macquarie Group and Playside Studios positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Macquarie Group position performs unexpectedly, Playside Studios 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 Playside Studios will offset losses from the drop in Playside Studios' long position.| Macquarie Group vs. Lykos Metals | Macquarie Group vs. Falcon Metals | Macquarie Group vs. Gold Road Resources | Macquarie Group vs. Meeka Metals Limited |
| Playside Studios vs. Health and Plant | Playside Studios vs. EROAD | Playside Studios vs. Aussie Broadband | Playside Studios vs. Cleanaway Waste Management |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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