Correlation Between NYSE Composite and MACYS
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By analyzing existing cross correlation between NYSE Composite and MACYS RETAIL HLDGS, you can compare the effects of market volatilities on NYSE Composite 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 NYSE Composite with a short position of MACYS. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and MACYS.
Diversification Opportunities for NYSE Composite and MACYS
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between NYSE and MACYS is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite 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 NYSE Composite 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 NYSE Composite 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 NYSE Composite i.e., NYSE Composite and MACYS go up and down completely randomly.
Pair Corralation between NYSE Composite and MACYS
Assuming the 90 days trading horizon NYSE Composite is expected to generate 0.47 times more return on investment than MACYS. However, NYSE Composite is 2.12 times less risky than MACYS. It trades about 0.11 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 1,550,264 in NYSE Composite on August 31, 2024 and sell it today you would earn a total of 476,940 from holding NYSE Composite or generate 30.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 93.85% |
| Values | Daily Returns |
NYSE Composite vs. MACYS RETAIL HLDGS
Performance |
| Timeline |
NYSE Composite and MACYS Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
MACYS RETAIL HLDGS
Pair trading matchups for MACYS
Pair Trading with NYSE Composite and MACYS
The main advantage of trading using opposite NYSE Composite and MACYS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite 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.| NYSE Composite vs. Nextplat Corp | NYSE Composite vs. Qualys Inc | NYSE Composite vs. Cadence Design Systems | NYSE Composite vs. Asure Software |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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