Correlation Between Marks Spencer and Macys
Can any of the company-specific risk be diversified away by investing in both Marks Spencer and Macys 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 Marks Spencer and Macys into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Marks Spencer Group and Macys Inc, you can compare the effects of market volatilities on Marks Spencer 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 Marks Spencer with a short position of Macys. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marks Spencer and Macys.
Diversification Opportunities for Marks Spencer and Macys
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Marks and Macys is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Marks Spencer Group and Macys Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Macys Inc and Marks Spencer 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 Marks Spencer Group 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 Inc has no effect on the direction of Marks Spencer i.e., Marks Spencer and Macys go up and down completely randomly.
Pair Corralation between Marks Spencer and Macys
Assuming the 90 days horizon Marks Spencer Group is expected to generate 0.86 times more return on investment than Macys. However, Marks Spencer Group is 1.16 times less risky than Macys. It trades about -0.19 of its potential returns per unit of risk. Macys Inc is currently generating about -0.18 per unit of risk. If you would invest 944.00 in Marks Spencer Group on October 20, 2024 and sell it today you would lose (103.00) from holding Marks Spencer Group or give up 10.91% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Marks Spencer Group vs. Macys Inc
Performance |
| Timeline |
| Marks Spencer Group |
| Macys Inc |
Marks Spencer and Macys Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marks Spencer and Macys
The main advantage of trading using opposite Marks Spencer and Macys positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marks Spencer 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' long position.| Marks Spencer vs. Kohls Corp | Marks Spencer vs. Nordstrom | Marks Spencer vs. Macys Inc | Marks Spencer vs. Dillards |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |