Correlation Between Sherritt International and Macmahon Holdings
Can any of the company-specific risk be diversified away by investing in both Sherritt International 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 Sherritt International and Macmahon Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sherritt International and Macmahon Holdings Limited, you can compare the effects of market volatilities on Sherritt International 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 Sherritt International with a short position of Macmahon Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sherritt International and Macmahon Holdings.
Diversification Opportunities for Sherritt International and Macmahon Holdings
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Sherritt and Macmahon is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Sherritt International and Macmahon Holdings Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Macmahon Holdings and Sherritt International 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 Sherritt International 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 Sherritt International i.e., Sherritt International and Macmahon Holdings go up and down completely randomly.
Pair Corralation between Sherritt International and Macmahon Holdings
If you would invest 25.00 in Macmahon Holdings Limited on September 13, 2024 and sell it today you would earn a total of 0.00 from holding Macmahon Holdings Limited or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sherritt International vs. Macmahon Holdings Limited
Performance |
| Timeline |
| Sherritt International |
| Macmahon Holdings |
Sherritt International and Macmahon Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sherritt International and Macmahon Holdings
The main advantage of trading using opposite Sherritt International and Macmahon Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sherritt International 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.| Sherritt International vs. Metals X Limited | Sherritt International vs. Interra Copper Corp | Sherritt International vs. Anglo American PLC | Sherritt International vs. OM Holdings Limited |
| Macmahon Holdings vs. Advantage Solutions | Macmahon Holdings vs. Atlas Corp | Macmahon Holdings vs. PureCycle Technologies | Macmahon Holdings vs. WM Technology |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Stocks Directory Find actively traded stocks across global markets | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |