Correlation Between ARK Autonomous and MACYS
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By analyzing existing cross correlation between ARK Autonomous Technology and MACYS RETAIL HLDGS, you can compare the effects of market volatilities on ARK Autonomous and MACYS 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 ARK Autonomous with a short position of MACYS. Check out your portfolio center. Please also check ongoing floating volatility patterns of ARK Autonomous and MACYS.
Diversification Opportunities for ARK Autonomous and MACYS
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ARK and MACYS is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding ARK Autonomous Technology and MACYS RETAIL HLDGS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MACYS RETAIL HLDGS and ARK Autonomous 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 ARK Autonomous Technology are associated (or correlated) with MACYS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MACYS RETAIL HLDGS has no effect on the direction of ARK Autonomous i.e., ARK Autonomous and MACYS go up and down completely randomly.
Pair Corralation between ARK Autonomous and MACYS
Given the investment horizon of 90 days ARK Autonomous Technology is expected to generate 1.18 times more return on investment than MACYS. However, ARK Autonomous is 1.18 times more volatile than MACYS RETAIL HLDGS. It trades about 0.26 of its potential returns per unit of risk. MACYS RETAIL HLDGS is currently generating about -0.03 per unit of risk. If you would invest 5,929 in ARK Autonomous Technology on September 24, 2024 and sell it today you would earn a total of 1,956 from holding ARK Autonomous Technology or generate 32.99% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 90.77% |
Values | Daily Returns |
ARK Autonomous Technology vs. MACYS RETAIL HLDGS
Performance |
Timeline |
ARK Autonomous Technology |
MACYS RETAIL HLDGS |
ARK Autonomous and MACYS Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with ARK Autonomous and MACYS
The main advantage of trading using opposite ARK Autonomous and MACYS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ARK Autonomous position performs unexpectedly, MACYS 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 MACYS will offset losses from the drop in MACYS's long position.ARK Autonomous vs. ARK Fintech Innovation | ARK Autonomous vs. ARK Next Generation | ARK Autonomous vs. ARK Genomic Revolution | ARK Autonomous vs. ARK Innovation ETF |
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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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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