Correlation Between Made Tech and Amaroq Minerals
Can any of the company-specific risk be diversified away by investing in both Made Tech and Amaroq Minerals 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 Made Tech and Amaroq Minerals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Made Tech Group and Amaroq Minerals, you can compare the effects of market volatilities on Made Tech and Amaroq Minerals 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 Made Tech with a short position of Amaroq Minerals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Made Tech and Amaroq Minerals.
Diversification Opportunities for Made Tech and Amaroq Minerals
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Made and Amaroq is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Made Tech Group and Amaroq Minerals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amaroq Minerals and Made Tech 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 Made Tech Group are associated (or correlated) with Amaroq Minerals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amaroq Minerals has no effect on the direction of Made Tech i.e., Made Tech and Amaroq Minerals go up and down completely randomly.
Pair Corralation between Made Tech and Amaroq Minerals
Assuming the 90 days trading horizon Made Tech Group is expected to generate 1.89 times more return on investment than Amaroq Minerals. However, Made Tech is 1.89 times more volatile than Amaroq Minerals. It trades about 0.01 of its potential returns per unit of risk. Amaroq Minerals is currently generating about -0.2 per unit of risk. If you would invest 2,790 in Made Tech Group on November 28, 2024 and sell it today you would lose (15.00) from holding Made Tech Group or give up 0.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Made Tech Group vs. Amaroq Minerals
Performance |
| Timeline |
| Made Tech Group |
| Amaroq Minerals |
Made Tech and Amaroq Minerals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Made Tech and Amaroq Minerals
The main advantage of trading using opposite Made Tech and Amaroq Minerals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Made Tech position performs unexpectedly, Amaroq Minerals 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 Amaroq Minerals will offset losses from the drop in Amaroq Minerals' long position.| Made Tech vs. Air Products Chemicals | Made Tech vs. New Residential Investment | Made Tech vs. China Pacific Insurance | Made Tech vs. Ecclesiastical Insurance Office |
| Amaroq Minerals vs. Software Circle plc | Amaroq Minerals vs. Berner Kantonalbank AG | Amaroq Minerals vs. Sydbank | Amaroq Minerals vs. Vitec Software Group |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| CEOs Directory Screen CEOs from public companies around the world |