Correlation Between Macys and Grupo Mateus
Can any of the company-specific risk be diversified away by investing in both Macys and Grupo Mateus 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 Macys and Grupo Mateus into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Macys Inc and Grupo Mateus SA, you can compare the effects of market volatilities on Macys and Grupo Mateus 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 Macys with a short position of Grupo Mateus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Macys and Grupo Mateus.
Diversification Opportunities for Macys and Grupo Mateus
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Macys and Grupo is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Macys Inc and Grupo Mateus SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grupo Mateus SA and Macys 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 Macys Inc are associated (or correlated) with Grupo Mateus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grupo Mateus SA has no effect on the direction of Macys i.e., Macys and Grupo Mateus go up and down completely randomly.
Pair Corralation between Macys and Grupo Mateus
Assuming the 90 days trading horizon Macys Inc is expected to generate 1.02 times more return on investment than Grupo Mateus. However, Macys is 1.02 times more volatile than Grupo Mateus SA. It trades about 0.26 of its potential returns per unit of risk. Grupo Mateus SA is currently generating about -0.07 per unit of risk. If you would invest 9,199 in Macys Inc on September 25, 2024 and sell it today you would earn a total of 1,101 from holding Macys Inc or generate 11.97% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 95.45% |
Values | Daily Returns |
Macys Inc vs. Grupo Mateus SA
Performance |
Timeline |
Macys Inc |
Grupo Mateus SA |
Macys and Grupo Mateus Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Macys and Grupo Mateus
The main advantage of trading using opposite Macys and Grupo Mateus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Macys position performs unexpectedly, Grupo Mateus 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 Grupo Mateus will offset losses from the drop in Grupo Mateus' long position.Macys vs. Pet Center Comrcio | Macys vs. Natura Co Holding | Macys vs. Rede DOr So | Macys vs. Lojas Quero Quero SA |
Grupo Mateus vs. Pet Center Comrcio | Grupo Mateus vs. Natura Co Holding | Grupo Mateus vs. Rede DOr So | Grupo Mateus vs. Lojas Quero Quero SA |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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