Correlation Between SBM Offshore and MACYS
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By analyzing existing cross correlation between SBM Offshore NV and MACYS RETAIL HLDGS, you can compare the effects of market volatilities on SBM Offshore 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 SBM Offshore with a short position of MACYS. Check out your portfolio center. Please also check ongoing floating volatility patterns of SBM Offshore and MACYS.
Diversification Opportunities for SBM Offshore and MACYS
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between SBM and MACYS is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding SBM Offshore NV 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 SBM Offshore 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 SBM Offshore NV 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 SBM Offshore i.e., SBM Offshore and MACYS go up and down completely randomly.
Pair Corralation between SBM Offshore and MACYS
Assuming the 90 days horizon SBM Offshore NV is expected to under-perform the MACYS. In addition to that, SBM Offshore is 1.34 times more volatile than MACYS RETAIL HLDGS. It trades about -0.24 of its total potential returns per unit of risk. MACYS RETAIL HLDGS is currently generating about -0.09 per unit of volatility. If you would invest 7,037 in MACYS RETAIL HLDGS on September 12, 2024 and sell it today you would lose (212.00) from holding MACYS RETAIL HLDGS or give up 3.01% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
SBM Offshore NV vs. MACYS RETAIL HLDGS
Performance |
| Timeline |
| SBM Offshore NV |
| MACYS RETAIL HLDGS |
SBM Offshore and MACYS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SBM Offshore and MACYS
The main advantage of trading using opposite SBM Offshore and MACYS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SBM Offshore 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.| SBM Offshore vs. Expro Group Holdings | SBM Offshore vs. ChampionX | SBM Offshore vs. Ranger Energy Services | SBM Offshore vs. Cactus Inc |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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