Correlation Between MacroGenics and Quipt Home

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Can any of the company-specific risk be diversified away by investing in both MacroGenics and Quipt Home 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 MacroGenics and Quipt Home into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MacroGenics and Quipt Home Medical, you can compare the effects of market volatilities on MacroGenics and Quipt Home 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 MacroGenics with a short position of Quipt Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of MacroGenics and Quipt Home.

Diversification Opportunities for MacroGenics and Quipt Home

0.42
  Correlation Coefficient

Very weak diversification

The 3 months correlation between MacroGenics and Quipt is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding MacroGenics and Quipt Home Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Quipt Home Medical and MacroGenics 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 MacroGenics are associated (or correlated) with Quipt Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Quipt Home Medical has no effect on the direction of MacroGenics i.e., MacroGenics and Quipt Home go up and down completely randomly.

Pair Corralation between MacroGenics and Quipt Home

Given the investment horizon of 90 days MacroGenics is expected to generate 1.01 times less return on investment than Quipt Home. In addition to that, MacroGenics is 1.45 times more volatile than Quipt Home Medical. It trades about 0.03 of its total potential returns per unit of risk. Quipt Home Medical is currently generating about 0.04 per unit of volatility. If you would invest  217.00  in Quipt Home Medical on August 19, 2025 and sell it today you would earn a total of  13.00  from holding Quipt Home Medical or generate 5.99% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy93.85%
ValuesDaily Returns

MacroGenics  vs.  Quipt Home Medical

 Performance 
       Timeline  
MacroGenics 

Risk-Adjusted Performance

Weak

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in MacroGenics are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unsteady basic indicators, MacroGenics may actually be approaching a critical reversion point that can send shares even higher in December 2025.
Quipt Home Medical 

Risk-Adjusted Performance

Soft

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Quipt Home Medical are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively conflicting basic indicators, Quipt Home may actually be approaching a critical reversion point that can send shares even higher in December 2025.

MacroGenics and Quipt Home Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with MacroGenics and Quipt Home

The main advantage of trading using opposite MacroGenics and Quipt Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MacroGenics position performs unexpectedly, Quipt Home 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 Quipt Home will offset losses from the drop in Quipt Home's long position.
The idea behind MacroGenics and Quipt Home Medical pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 AI Portfolio Prophet module to use AI to generate optimal portfolios and find profitable investment opportunities.

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