Correlation Between Sears Canada and Marks Spencer
Can any of the company-specific risk be diversified away by investing in both Sears Canada and Marks Spencer 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 Sears Canada and Marks Spencer into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sears Canada and Marks Spencer Group, you can compare the effects of market volatilities on Sears Canada and Marks Spencer 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 Sears Canada with a short position of Marks Spencer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sears Canada and Marks Spencer.
Diversification Opportunities for Sears Canada and Marks Spencer
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sears and Marks is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Sears Canada and Marks Spencer Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marks Spencer Group and Sears Canada 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 Sears Canada are associated (or correlated) with Marks Spencer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marks Spencer Group has no effect on the direction of Sears Canada i.e., Sears Canada and Marks Spencer go up and down completely randomly.
Pair Corralation between Sears Canada and Marks Spencer
If you would invest 0.01 in Sears Canada on August 30, 2024 and sell it today you would earn a total of 0.00 from holding Sears Canada or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 2.27% |
| Values | Daily Returns |
Sears Canada vs. Marks Spencer Group
Performance |
| Timeline |
| Sears Canada |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Marks Spencer Group |
Sears Canada and Marks Spencer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sears Canada and Marks Spencer
The main advantage of trading using opposite Sears Canada and Marks Spencer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sears Canada position performs unexpectedly, Marks Spencer 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 Marks Spencer will offset losses from the drop in Marks Spencer's long position.The idea behind Sears Canada and Marks Spencer Group pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Marks Spencer vs. Nordstrom | Marks Spencer vs. Macys Inc | Marks Spencer vs. Dillards Capital Trust | Marks Spencer vs. Kohls Corp |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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