Correlation Between Perella Weinberg and Macquarie Group
Can any of the company-specific risk be diversified away by investing in both Perella Weinberg and Macquarie Group 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 Perella Weinberg and Macquarie Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Perella Weinberg Partners and Macquarie Group Ltd, you can compare the effects of market volatilities on Perella Weinberg and Macquarie Group 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 Perella Weinberg with a short position of Macquarie Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Perella Weinberg and Macquarie Group.
Diversification Opportunities for Perella Weinberg and Macquarie Group
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Perella and Macquarie is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Perella Weinberg Partners and Macquarie Group Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Macquarie Group and Perella Weinberg 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 Perella Weinberg Partners are associated (or correlated) with Macquarie Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Macquarie Group has no effect on the direction of Perella Weinberg i.e., Perella Weinberg and Macquarie Group go up and down completely randomly.
Pair Corralation between Perella Weinberg and Macquarie Group
Considering the 90-day investment horizon Perella Weinberg Partners is expected to generate 1.88 times more return on investment than Macquarie Group. However, Perella Weinberg is 1.88 times more volatile than Macquarie Group Ltd. It trades about 0.21 of its potential returns per unit of risk. Macquarie Group Ltd is currently generating about 0.23 per unit of risk. If you would invest 2,340 in Perella Weinberg Partners on November 5, 2024 and sell it today you would earn a total of 242.00 from holding Perella Weinberg Partners or generate 10.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Perella Weinberg Partners vs. Macquarie Group Ltd
Performance |
| Timeline |
| Perella Weinberg Partners |
| Macquarie Group |
Perella Weinberg and Macquarie Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Perella Weinberg and Macquarie Group
The main advantage of trading using opposite Perella Weinberg and Macquarie Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Perella Weinberg position performs unexpectedly, Macquarie Group 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 Macquarie Group will offset losses from the drop in Macquarie Group's long position.| Perella Weinberg vs. Evercore Partners | Perella Weinberg vs. Lazard | Perella Weinberg vs. Piper Sandler Companies | Perella Weinberg vs. Moelis Co |
| Macquarie Group vs. Evercore Partners | Macquarie Group vs. PJT Partners | Macquarie Group vs. Lazard | Macquarie Group vs. Perella Weinberg Partners |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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