Correlation Between Macquarie Group and IGATE Corp
Can any of the company-specific risk be diversified away by investing in both Macquarie Group and IGATE Corp 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 Macquarie Group and IGATE Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Macquarie Group and IGATE Corp, you can compare the effects of market volatilities on Macquarie Group and IGATE Corp 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 Macquarie Group with a short position of IGATE Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Macquarie Group and IGATE Corp.
Diversification Opportunities for Macquarie Group and IGATE Corp
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Macquarie and IGATE is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Macquarie Group Ltd and IGATE Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IGATE Corp and Macquarie Group 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 Macquarie Group are associated (or correlated) with IGATE Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IGATE Corp has no effect on the direction of Macquarie Group i.e., Macquarie Group and IGATE Corp go up and down completely randomly.
Pair Corralation between Macquarie Group and IGATE Corp
If you would invest 12,984 in Macquarie Group on December 29, 2023 and sell it today you would earn a total of 68.00 from holding Macquarie Group or generate 0.52% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 4.55% |
Values | Daily Returns |
Macquarie Group Ltd vs. IGATE Corp
Performance |
Timeline |
Macquarie Group |
IGATE Corp |
Risk-Adjusted Performance
0 of 100
Low | High |
Very Weak
Macquarie Group and IGATE Corp Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Macquarie Group and IGATE Corp
The main advantage of trading using opposite Macquarie Group and IGATE Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Macquarie Group position performs unexpectedly, IGATE Corp 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 IGATE Corp will offset losses from the drop in IGATE Corp's long position.Macquarie Group vs. Morgan Stanley | Macquarie Group vs. Goldman Sachs Group | Macquarie Group vs. Charles Schwab Corp | Macquarie Group vs. The Goldman Sachs |
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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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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