Correlation Between DFS Furniture and Macy
Can any of the company-specific risk be diversified away by investing in both DFS Furniture and Macy 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 DFS Furniture and Macy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DFS Furniture PLC and Macy Inc, you can compare the effects of market volatilities on DFS Furniture and Macy 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 DFS Furniture with a short position of Macy. Check out your portfolio center. Please also check ongoing floating volatility patterns of DFS Furniture and Macy.
Diversification Opportunities for DFS Furniture and Macy
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between DFS and Macy is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding DFS Furniture PLC and Macy Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Macy Inc and DFS Furniture 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 DFS Furniture PLC are associated (or correlated) with Macy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Macy Inc has no effect on the direction of DFS Furniture i.e., DFS Furniture and Macy go up and down completely randomly.
Pair Corralation between DFS Furniture and Macy
If you would invest 15,701 in DFS Furniture PLC on October 7, 2024 and sell it today you would lose (1,541) from holding DFS Furniture PLC or give up 9.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.2% |
| Values | Daily Returns |
DFS Furniture PLC vs. Macy Inc
Performance |
| Timeline |
| DFS Furniture PLC |
| Macy Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
DFS Furniture and Macy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DFS Furniture and Macy
The main advantage of trading using opposite DFS Furniture and Macy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DFS Furniture position performs unexpectedly, Macy 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 Macy will offset losses from the drop in Macy's long position.| DFS Furniture vs. JD Sports Fashion | DFS Furniture vs. Air Products Chemicals | DFS Furniture vs. Roebuck Food Group | DFS Furniture vs. Bell Food Group |
| Macy vs. Gamma Communications PLC | Macy vs. Verizon Communications | Macy vs. Lindsell Train Investment | Macy vs. Primorus Investments plc |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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