Correlation Between Short Term and MACYS
Specify exactly 2 symbols:
By analyzing existing cross correlation between Short Term Fund A and MACYS RETAIL HLDGS, you can compare the effects of market volatilities on Short Term 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 Short Term with a short position of MACYS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Short Term and MACYS.
Diversification Opportunities for Short Term and MACYS
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Short and MACYS is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Short Term Fund A 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 Short Term 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 Short Term Fund A 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 Short Term i.e., Short Term and MACYS go up and down completely randomly.
Pair Corralation between Short Term and MACYS
Assuming the 90 days horizon Short Term Fund A is expected to generate 0.06 times more return on investment than MACYS. However, Short Term Fund A is 15.43 times less risky than MACYS. It trades about 0.24 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 864.00 in Short Term Fund A on September 24, 2024 and sell it today you would earn a total of 104.00 from holding Short Term Fund A or generate 12.04% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 94.97% |
Values | Daily Returns |
Short Term Fund A vs. MACYS RETAIL HLDGS
Performance |
Timeline |
Short Term Fund |
MACYS RETAIL HLDGS |
Short Term and MACYS Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Short Term and MACYS
The main advantage of trading using opposite Short Term and MACYS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Short Term 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.Short Term vs. Pimco Rae Worldwide | Short Term vs. Pimco Rae Worldwide | Short Term vs. Pimco Rae Worldwide | Short Term vs. Pimco Rae Worldwide |
MACYS vs. AEP TEX INC | MACYS vs. US BANK NATIONAL | MACYS vs. Brightsphere Investment Group | MACYS vs. Neurocrine Biosciences |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
Transaction History View history of all your transactions and understand their impact on performance | |
Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |