Correlation Between New York and Banco Macro
Can any of the company-specific risk be diversified away by investing in both New York and Banco Macro 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 New York and Banco Macro into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between New York Community and Banco Macro SA, you can compare the effects of market volatilities on New York and Banco Macro 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 New York with a short position of Banco Macro. Check out your portfolio center. Please also check ongoing floating volatility patterns of New York and Banco Macro.
Diversification Opportunities for New York and Banco Macro
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between New and Banco is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding New York Community and Banco Macro SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Banco Macro SA and New York 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 New York Community are associated (or correlated) with Banco Macro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Banco Macro SA has no effect on the direction of New York i.e., New York and Banco Macro go up and down completely randomly.
Pair Corralation between New York and Banco Macro
Given the investment horizon of 90 days New York Community is expected to under-perform the Banco Macro. In addition to that, New York is 1.32 times more volatile than Banco Macro SA. It trades about -0.01 of its total potential returns per unit of risk. Banco Macro SA is currently generating about 0.13 per unit of volatility. If you would invest 1,096 in Banco Macro SA on August 30, 2024 and sell it today you would earn a total of 7,108 from holding Banco Macro SA or generate 648.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.19% |
| Values | Daily Returns |
New York Community vs. Banco Macro SA
Performance |
| Timeline |
| New York Community |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Weak
| Banco Macro SA |
New York and Banco Macro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with New York and Banco Macro
The main advantage of trading using opposite New York and Banco Macro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if New York position performs unexpectedly, Banco Macro 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 Banco Macro will offset losses from the drop in Banco Macro's long position.| New York vs. KeyCorp | New York vs. Fifth Third Bancorp | New York vs. Regions Financial | New York vs. Zions Bancorporation |
| Banco Macro vs. Grupo Supervielle SA | Banco Macro vs. BBVA Banco Frances | Banco Macro vs. Banco Bradesco SA | Banco Macro vs. Itau Unibanco Banco |
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 CEOs Directory module to screen CEOs from public companies around the world.
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