Correlation Between HP and MACYS
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By analyzing existing cross correlation between HP Inc and MACYS RETAIL HLDGS, you can compare the effects of market volatilities on HP 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 HP with a short position of MACYS. Check out your portfolio center. Please also check ongoing floating volatility patterns of HP and MACYS.
Diversification Opportunities for HP and MACYS
Very good diversification
The 3 months correlation between HP and MACYS is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding HP Inc 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 HP 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 HP Inc 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 HP i.e., HP and MACYS go up and down completely randomly.
Pair Corralation between HP and MACYS
Considering the 90-day investment horizon HP Inc is expected to generate 1.29 times more return on investment than MACYS. However, HP is 1.29 times more volatile than MACYS RETAIL HLDGS. It trades about 0.04 of its potential returns per unit of risk. MACYS RETAIL HLDGS is currently generating about 0.02 per unit of risk. If you would invest 2,853 in HP Inc on August 31, 2024 and sell it today you would earn a total of 690.00 from holding HP Inc or generate 24.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 93.85% |
| Values | Daily Returns |
HP Inc vs. MACYS RETAIL HLDGS
Performance |
| Timeline |
| HP Inc |
| MACYS RETAIL HLDGS |
HP and MACYS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HP and MACYS
The main advantage of trading using opposite HP and MACYS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HP 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.| HP vs. RLJ Lodging Trust | HP vs. Aquagold International | HP vs. Stepstone Group | HP vs. Morningstar Unconstrained Allocation |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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