Correlation Between SupplyMe Capital and Macerich
Can any of the company-specific risk be diversified away by investing in both SupplyMe Capital and Macerich 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 SupplyMe Capital and Macerich into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SupplyMe Capital PLC and Macerich Co, you can compare the effects of market volatilities on SupplyMe Capital and Macerich 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 SupplyMe Capital with a short position of Macerich. Check out your portfolio center. Please also check ongoing floating volatility patterns of SupplyMe Capital and Macerich.
Diversification Opportunities for SupplyMe Capital and Macerich
-0.92 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SupplyMe and Macerich is -0.92. Overlapping area represents the amount of risk that can be diversified away by holding SupplyMe Capital PLC and Macerich Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Macerich and SupplyMe Capital 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 SupplyMe Capital PLC are associated (or correlated) with Macerich. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Macerich has no effect on the direction of SupplyMe Capital i.e., SupplyMe Capital and Macerich go up and down completely randomly.
Pair Corralation between SupplyMe Capital and Macerich
Assuming the 90 days trading horizon SupplyMe Capital PLC is expected to under-perform the Macerich. In addition to that, SupplyMe Capital is 2.95 times more volatile than Macerich Co. It trades about -0.06 of its total potential returns per unit of risk. Macerich Co is currently generating about 0.22 per unit of volatility. If you would invest 1,833 in Macerich Co on August 28, 2024 and sell it today you would earn a total of 195.00 from holding Macerich Co or generate 10.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SupplyMe Capital PLC vs. Macerich Co
Performance |
| Timeline |
| SupplyMe Capital PLC |
| Macerich |
SupplyMe Capital and Macerich Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SupplyMe Capital and Macerich
The main advantage of trading using opposite SupplyMe Capital and Macerich positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SupplyMe Capital position performs unexpectedly, Macerich 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 Macerich will offset losses from the drop in Macerich's long position.| SupplyMe Capital vs. Uniper SE | SupplyMe Capital vs. London Security Plc | SupplyMe Capital vs. SURETRACK MON | SupplyMe Capital vs. Ikigai Ventures |
| Macerich vs. Greenroc Mining PLC | Macerich vs. Aeorema Communications Plc | Macerich vs. Bisichi Mining PLC | Macerich vs. MoneysupermarketCom Group PLC |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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