Correlation Between Macy and Secure Property
Can any of the company-specific risk be diversified away by investing in both Macy and Secure Property 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 Macy and Secure Property into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Macy Inc and Secure Property Development, you can compare the effects of market volatilities on Macy and Secure Property 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 Macy with a short position of Secure Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of Macy and Secure Property.
Diversification Opportunities for Macy and Secure Property
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Macy and Secure is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Macy Inc and Secure Property Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Secure Property Deve and Macy 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 Macy Inc are associated (or correlated) with Secure Property. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Secure Property Deve has no effect on the direction of Macy i.e., Macy and Secure Property go up and down completely randomly.
Pair Corralation between Macy and Secure Property
If you would invest 1,521 in Macy Inc on September 4, 2024 and sell it today you would earn a total of 162.00 from holding Macy Inc or generate 10.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Macy Inc vs. Secure Property Development
Performance |
| Timeline |
| Macy Inc |
| Secure Property Deve |
Macy and Secure Property Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Macy and Secure Property
The main advantage of trading using opposite Macy and Secure Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Macy position performs unexpectedly, Secure Property 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 Secure Property will offset losses from the drop in Secure Property's long position.| Macy vs. Catalyst Media Group | Macy vs. CATLIN GROUP | Macy vs. RTW Venture Fund | Macy vs. Secure Property Development |
| Secure Property vs. Inspiration Healthcare Group | Secure Property vs. Endeavour Mining Corp | Secure Property vs. Bisichi Mining PLC | Secure Property vs. Silvercorp Metals |
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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