Correlation Between PureCycle Technologies and Macmahon Holdings
Can any of the company-specific risk be diversified away by investing in both PureCycle Technologies and Macmahon Holdings 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 PureCycle Technologies and Macmahon Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PureCycle Technologies and Macmahon Holdings Limited, you can compare the effects of market volatilities on PureCycle Technologies and Macmahon Holdings 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 PureCycle Technologies with a short position of Macmahon Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of PureCycle Technologies and Macmahon Holdings.
Diversification Opportunities for PureCycle Technologies and Macmahon Holdings
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between PureCycle and Macmahon is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding PureCycle Technologies and Macmahon Holdings Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Macmahon Holdings and PureCycle Technologies 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 PureCycle Technologies are associated (or correlated) with Macmahon Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Macmahon Holdings has no effect on the direction of PureCycle Technologies i.e., PureCycle Technologies and Macmahon Holdings go up and down completely randomly.
Pair Corralation between PureCycle Technologies and Macmahon Holdings
If you would invest 499.00 in PureCycle Technologies on September 1, 2024 and sell it today you would lose (9.00) from holding PureCycle Technologies or give up 1.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PureCycle Technologies vs. Macmahon Holdings Limited
Performance |
| Timeline |
| PureCycle Technologies |
| Macmahon Holdings |
PureCycle Technologies and Macmahon Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PureCycle Technologies and Macmahon Holdings
The main advantage of trading using opposite PureCycle Technologies and Macmahon Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PureCycle Technologies position performs unexpectedly, Macmahon Holdings 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 Macmahon Holdings will offset losses from the drop in Macmahon Holdings' long position.| PureCycle Technologies vs. Origin Materials Warrant | PureCycle Technologies vs. Purecycle Technologies Holdings | PureCycle Technologies vs. Blade Air Mobility |
| Macmahon Holdings vs. South32 Limited | Macmahon Holdings vs. NioCorp Developments Ltd | Macmahon Holdings vs. HUMANA INC | Macmahon Holdings vs. SCOR PK |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |