Correlation Between MACOM Technology and Contagious Gaming
Can any of the company-specific risk be diversified away by investing in both MACOM Technology and Contagious Gaming 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 MACOM Technology and Contagious Gaming into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MACOM Technology Solutions and Contagious Gaming, you can compare the effects of market volatilities on MACOM Technology and Contagious Gaming 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 MACOM Technology with a short position of Contagious Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of MACOM Technology and Contagious Gaming.
Diversification Opportunities for MACOM Technology and Contagious Gaming
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MACOM and Contagious is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding MACOM Technology Solutions and Contagious Gaming in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Contagious Gaming and MACOM Technology 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 MACOM Technology Solutions are associated (or correlated) with Contagious Gaming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Contagious Gaming has no effect on the direction of MACOM Technology i.e., MACOM Technology and Contagious Gaming go up and down completely randomly.
Pair Corralation between MACOM Technology and Contagious Gaming
Given the investment horizon of 90 days MACOM Technology Solutions is expected to generate 0.82 times more return on investment than Contagious Gaming. However, MACOM Technology Solutions is 1.22 times less risky than Contagious Gaming. It trades about 0.09 of its potential returns per unit of risk. Contagious Gaming is currently generating about -0.06 per unit of risk. If you would invest 8,770 in MACOM Technology Solutions on September 4, 2024 and sell it today you would earn a total of 5,333 from holding MACOM Technology Solutions or generate 60.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
MACOM Technology Solutions vs. Contagious Gaming
Performance |
| Timeline |
| MACOM Technology Sol |
| Contagious Gaming |
MACOM Technology and Contagious Gaming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MACOM Technology and Contagious Gaming
The main advantage of trading using opposite MACOM Technology and Contagious Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MACOM Technology position performs unexpectedly, Contagious Gaming 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 Contagious Gaming will offset losses from the drop in Contagious Gaming's long position.| MACOM Technology vs. NXP Semiconductors NV | MACOM Technology vs. Analog Devices | MACOM Technology vs. Monolithic Power Systems | MACOM Technology vs. ON Semiconductor |
| Contagious Gaming vs. ArcelorMittal SA ADR | Contagious Gaming vs. Universal Music Group | Contagious Gaming vs. RBC Bearings Incorporated | Contagious Gaming vs. CECO Environmental Corp |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |