Correlation Between Macys and Dillards
Can any of the company-specific risk be diversified away by investing in both Macys and Dillards 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 Macys and Dillards into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Macys Inc and Dillards, you can compare the effects of market volatilities on Macys and Dillards 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 Macys with a short position of Dillards. Check out your portfolio center. Please also check ongoing floating volatility patterns of Macys and Dillards.
Diversification Opportunities for Macys and Dillards
Pay attention - limited upside
The 3 months correlation between Macys and Dillards is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Macys Inc and Dillards in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dillards and Macys 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 Macys Inc are associated (or correlated) with Dillards. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dillards has no effect on the direction of Macys i.e., Macys and Dillards go up and down completely randomly.
Pair Corralation between Macys and Dillards
If you would invest (100.00) in Dillards on August 30, 2024 and sell it today you would earn a total of 100.00 from holding Dillards or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Macys Inc vs. Dillards
Performance |
| Timeline |
| Macys Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Modest
| Dillards |
Macys and Dillards Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Macys and Dillards
The main advantage of trading using opposite Macys and Dillards positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Macys position performs unexpectedly, Dillards 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 Dillards will offset losses from the drop in Dillards' long position.| Macys vs. Live Nation Entertainment | Macys vs. Dave Busters Entertainment | Macys vs. Entravision Communications | Macys vs. Seven West Media |
| Dillards vs. TERADATA | Dillards vs. Automatic Data Processing | Dillards vs. Choice Hotels International | Dillards vs. 24SEVENOFFICE GROUP AB |
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 Stocks Directory module to find actively traded stocks across global markets.
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