Correlation Between Stratasys and Macquarie Group
Can any of the company-specific risk be diversified away by investing in both Stratasys 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 Stratasys and Macquarie Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stratasys and Macquarie Group Ltd, you can compare the effects of market volatilities on Stratasys 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 Stratasys with a short position of Macquarie Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stratasys and Macquarie Group.
Diversification Opportunities for Stratasys and Macquarie Group
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Stratasys and Macquarie is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Stratasys and Macquarie Group Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Macquarie Group and Stratasys 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 Stratasys 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 Stratasys i.e., Stratasys and Macquarie Group go up and down completely randomly.
Pair Corralation between Stratasys and Macquarie Group
Given the investment horizon of 90 days Stratasys is expected to under-perform the Macquarie Group. In addition to that, Stratasys is 2.16 times more volatile than Macquarie Group Ltd. It trades about -0.03 of its total potential returns per unit of risk. Macquarie Group Ltd is currently generating about 0.07 per unit of volatility. If you would invest 10,575 in Macquarie Group Ltd on January 24, 2024 and sell it today you would earn a total of 1,522 from holding Macquarie Group Ltd or generate 14.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stratasys vs. Macquarie Group Ltd
Performance |
| Timeline |
| Stratasys |
| Macquarie Group |
Stratasys and Macquarie Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stratasys and Macquarie Group
The main advantage of trading using opposite Stratasys and Macquarie Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stratasys 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.| Stratasys vs. LG Display Co | Stratasys vs. Sony Corp | Stratasys vs. Sonos Inc | Stratasys vs. Vizio Holding Corp |
| Macquarie Group vs. Up Fintech Holding | Macquarie Group vs. CITIC Securities | Macquarie Group vs. Futu Holdings | Macquarie Group vs. Bit Digital |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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