Correlation Between BitFrontier Capital and Macquarie Group
Can any of the company-specific risk be diversified away by investing in both BitFrontier Capital 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 BitFrontier Capital and Macquarie Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BitFrontier Capital Holdings and Macquarie Group Limited, you can compare the effects of market volatilities on BitFrontier Capital 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 BitFrontier Capital with a short position of Macquarie Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of BitFrontier Capital and Macquarie Group.
Diversification Opportunities for BitFrontier Capital and Macquarie Group
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between BitFrontier and Macquarie is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding BitFrontier Capital Holdings and Macquarie Group Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Macquarie Group and BitFrontier 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 BitFrontier Capital Holdings 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 BitFrontier Capital i.e., BitFrontier Capital and Macquarie Group go up and down completely randomly.
Pair Corralation between BitFrontier Capital and Macquarie Group
Given the investment horizon of 90 days BitFrontier Capital Holdings is expected to under-perform the Macquarie Group. In addition to that, BitFrontier Capital is 38.75 times more volatile than Macquarie Group Limited. It trades about -0.28 of its total potential returns per unit of risk. Macquarie Group Limited is currently generating about -0.22 per unit of volatility. If you would invest 13,055 in Macquarie Group Limited on January 24, 2024 and sell it today you would lose (185.00) from holding Macquarie Group Limited or give up 1.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BitFrontier Capital Holdings vs. Macquarie Group Limited
Performance |
| Timeline |
| BitFrontier Capital |
| Macquarie Group |
BitFrontier Capital and Macquarie Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BitFrontier Capital and Macquarie Group
The main advantage of trading using opposite BitFrontier Capital and Macquarie Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BitFrontier Capital 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.| BitFrontier Capital vs. Up Fintech Holding | BitFrontier Capital vs. CITIC Securities | BitFrontier Capital vs. Futu Holdings | BitFrontier Capital vs. Bit Digital |
| 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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