Correlation Between Macmahon Holdings and Prime Mining
Can any of the company-specific risk be diversified away by investing in both Macmahon Holdings and Prime Mining 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 Macmahon Holdings and Prime Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Macmahon Holdings Limited and Prime Mining Corp, you can compare the effects of market volatilities on Macmahon Holdings and Prime Mining 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 Macmahon Holdings with a short position of Prime Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Macmahon Holdings and Prime Mining.
Diversification Opportunities for Macmahon Holdings and Prime Mining
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Macmahon and Prime is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Macmahon Holdings Limited and Prime Mining Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Prime Mining Corp and Macmahon Holdings 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 Macmahon Holdings Limited are associated (or correlated) with Prime Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Prime Mining Corp has no effect on the direction of Macmahon Holdings i.e., Macmahon Holdings and Prime Mining go up and down completely randomly.
Pair Corralation between Macmahon Holdings and Prime Mining
Assuming the 90 days horizon Macmahon Holdings Limited is expected to generate 2.11 times more return on investment than Prime Mining. However, Macmahon Holdings is 2.11 times more volatile than Prime Mining Corp. It trades about 0.18 of its potential returns per unit of risk. Prime Mining Corp is currently generating about 0.23 per unit of risk. If you would invest 16.00 in Macmahon Holdings Limited on August 17, 2025 and sell it today you would earn a total of 16.00 from holding Macmahon Holdings Limited or generate 100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 76.56% |
| Values | Daily Returns |
Macmahon Holdings Limited vs. Prime Mining Corp
Performance |
| Timeline |
| Macmahon Holdings |
| Prime Mining Corp |
Macmahon Holdings and Prime Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Macmahon Holdings and Prime Mining
The main advantage of trading using opposite Macmahon Holdings and Prime Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Macmahon Holdings position performs unexpectedly, Prime Mining 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 Prime Mining will offset losses from the drop in Prime Mining's long position.| Macmahon Holdings vs. SolGold Plc | Macmahon Holdings vs. Major Drilling Group | Macmahon Holdings vs. China Rare Earth | Macmahon Holdings vs. Philex Mining |
| Prime Mining vs. Ucore Rare Metals | Prime Mining vs. Fireweed Zinc | Prime Mining vs. Arafura Resources | Prime Mining vs. Troilus Gold Corp |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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