Correlation Between Rokmaster Resources and Macmahon Holdings
Can any of the company-specific risk be diversified away by investing in both Rokmaster Resources 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 Rokmaster Resources and Macmahon Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rokmaster Resources Corp and Macmahon Holdings Limited, you can compare the effects of market volatilities on Rokmaster Resources 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 Rokmaster Resources with a short position of Macmahon Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rokmaster Resources and Macmahon Holdings.
Diversification Opportunities for Rokmaster Resources and Macmahon Holdings
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Rokmaster and Macmahon is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Rokmaster Resources Corp and Macmahon Holdings Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Macmahon Holdings and Rokmaster Resources 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 Rokmaster Resources Corp 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 Rokmaster Resources i.e., Rokmaster Resources and Macmahon Holdings go up and down completely randomly.
Pair Corralation between Rokmaster Resources and Macmahon Holdings
If you would invest 1.60 in Rokmaster Resources Corp on August 25, 2024 and sell it today you would earn a total of 0.00 from holding Rokmaster Resources Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rokmaster Resources Corp vs. Macmahon Holdings Limited
Performance |
| Timeline |
| Rokmaster Resources Corp |
| Macmahon Holdings |
Rokmaster Resources and Macmahon Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rokmaster Resources and Macmahon Holdings
The main advantage of trading using opposite Rokmaster Resources and Macmahon Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rokmaster Resources 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.| Rokmaster Resources vs. Macmahon Holdings Limited | Rokmaster Resources vs. Hudson Resources | Rokmaster Resources vs. Thunder Gold Corp | Rokmaster Resources vs. Prime Meridian Resources |
| Macmahon Holdings vs. Celsius Holdings | Macmahon Holdings vs. Diageo PLC ADR | Macmahon Holdings vs. Oatly Group AB | Macmahon Holdings vs. Shake Shack |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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