Correlation Between Macys and Kohls
Can any of the company-specific risk be diversified away by investing in both Macys and Kohls 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 Kohls into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Macys Inc and Kohls, you can compare the effects of market volatilities on Macys and Kohls 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 Kohls. Check out your portfolio center. Please also check ongoing floating volatility patterns of Macys and Kohls.
Diversification Opportunities for Macys and Kohls
Pay attention - limited upside
The 3 months correlation between Macys and Kohls is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Macys Inc and Kohls in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kohls 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 Kohls. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kohls has no effect on the direction of Macys i.e., Macys and Kohls go up and down completely randomly.
Pair Corralation between Macys and Kohls
If you would invest (100.00) in Kohls on November 9, 2024 and sell it today you would earn a total of 100.00 from holding Kohls 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. Kohls
Performance |
| Timeline |
| Macys Inc |
| Kohls |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Macys and Kohls Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Macys and Kohls
The main advantage of trading using opposite Macys and Kohls positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Macys position performs unexpectedly, Kohls 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 Kohls will offset losses from the drop in Kohls' long position.| Macys vs. CM Hospitalar SA | Macys vs. GP Investments | Macys vs. Zoom Video Communications | Macys vs. UnitedHealth Group Incorporated |
| Kohls vs. Bread Financial Holdings | Kohls vs. Lloyds Banking Group | Kohls vs. Capital One Financial | Kohls vs. Truist Financial |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |