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
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between NYSE and MACYS is 0.61. 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 36.53 times less return on investment than MACYS. But when comparing it to its historical volatility, NYSE Composite is 64.91 times less risky than MACYS. It trades about 0.08 of its potential returns per unit of risk. MACYS RETAIL HLDGS is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 6,325 in MACYS RETAIL HLDGS on September 3, 2024 and sell it today you would earn a total of 500.00 from holding MACYS RETAIL HLDGS or generate 7.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 90.3% |
| 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. Lindblad Expeditions Holdings | NYSE Composite vs. LB Foster | NYSE Composite vs. HUTCHMED DRC | NYSE Composite vs. Bridgford Foods |
| MACYS vs. Dave Busters Entertainment | MACYS vs. Employers Holdings | MACYS vs. Aegon NV ADR | MACYS vs. Direct Line Insurance |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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