Correlation Between Direct Line and MACYS
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By analyzing existing cross correlation between Direct Line Insurance and MACYS RETAIL HLDGS, you can compare the effects of market volatilities on Direct Line 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 Direct Line with a short position of MACYS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Direct Line and MACYS.
Diversification Opportunities for Direct Line and MACYS
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Direct and MACYS is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Direct Line Insurance 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 Direct Line 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 Direct Line Insurance 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 Direct Line i.e., Direct Line and MACYS go up and down completely randomly.
Pair Corralation between Direct Line and MACYS
If you would invest 864.00 in Direct Line Insurance on September 4, 2024 and sell it today you would earn a total of 303.00 from holding Direct Line Insurance or generate 35.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Direct Line Insurance vs. MACYS RETAIL HLDGS
Performance |
| Timeline |
| Direct Line Insurance |
| MACYS RETAIL HLDGS |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Direct Line and MACYS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Direct Line and MACYS
The main advantage of trading using opposite Direct Line and MACYS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Direct Line 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.| Direct Line vs. MACOM Technology Solutions | Direct Line vs. Kulicke and Soffa | Direct Line vs. Delek Drilling | Direct Line vs. Entegris |
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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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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