Correlation Between Palmer Square and MACYS
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By analyzing existing cross correlation between Palmer Square Ultra Short and MACYS RETAIL HLDGS, you can compare the effects of market volatilities on Palmer Square 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 Palmer Square with a short position of MACYS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Palmer Square and MACYS.
Diversification Opportunities for Palmer Square and MACYS
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Palmer and MACYS is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Palmer Square Ultra Short 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 Palmer Square 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 Palmer Square Ultra Short 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 Palmer Square i.e., Palmer Square and MACYS go up and down completely randomly.
Pair Corralation between Palmer Square and MACYS
Assuming the 90 days horizon Palmer Square Ultra Short is expected to generate 0.02 times more return on investment than MACYS. However, Palmer Square Ultra Short is 44.27 times less risky than MACYS. It trades about 0.68 of its potential returns per unit of risk. MACYS RETAIL HLDGS is currently generating about 0.01 per unit of risk. If you would invest 1,799 in Palmer Square Ultra Short on September 24, 2024 and sell it today you would earn a total of 212.00 from holding Palmer Square Ultra Short or generate 11.78% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 94.97% |
Values | Daily Returns |
Palmer Square Ultra Short vs. MACYS RETAIL HLDGS
Performance |
Timeline |
Palmer Square Ultra |
MACYS RETAIL HLDGS |
Palmer Square and MACYS Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Palmer Square and MACYS
The main advantage of trading using opposite Palmer Square and MACYS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Palmer Square 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.Palmer Square vs. Palmer Square Ssi | Palmer Square vs. Short Term Income Fund | Palmer Square vs. Palmer Square Income | Palmer Square vs. Acm Dynamic Opportunity |
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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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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