Correlation Between Constellation Brands and Macys
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By analyzing existing cross correlation between Constellation Brands Class and Macys Retail Holdings, you can compare the effects of market volatilities on Constellation Brands 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 Constellation Brands with a short position of Macys. Check out your portfolio center. Please also check ongoing floating volatility patterns of Constellation Brands and Macys.
Diversification Opportunities for Constellation Brands and Macys
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Constellation and Macys is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Constellation Brands Class and Macys Retail Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Macys Retail Holdings and Constellation Brands 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 Constellation Brands Class 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 Holdings has no effect on the direction of Constellation Brands i.e., Constellation Brands and Macys go up and down completely randomly.
Pair Corralation between Constellation Brands and Macys
Considering the 90-day investment horizon Constellation Brands Class is expected to generate 0.41 times more return on investment than Macys. However, Constellation Brands Class is 2.44 times less risky than Macys. It trades about 0.1 of its potential returns per unit of risk. Macys Retail Holdings is currently generating about -0.03 per unit of risk. If you would invest 23,620 in Constellation Brands Class on September 12, 2024 and sell it today you would earn a total of 640.00 from holding Constellation Brands Class or generate 2.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 90.91% |
| Values | Daily Returns |
Constellation Brands Class vs. Macys Retail Holdings
Performance |
| Timeline |
| Constellation Brands |
| Macys Retail Holdings |
Constellation Brands and Macys Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Constellation Brands and Macys
The main advantage of trading using opposite Constellation Brands and Macys positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Constellation Brands 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.| Constellation Brands vs. Brown Forman | Constellation Brands vs. Duckhorn Portfolio | Constellation Brands vs. MGP Ingredients | Constellation Brands vs. Brown Forman |
| Macys vs. Constellation Brands Class | Macys vs. Vodka Brands Corp | Macys vs. Treasury Wine Estates | Macys vs. Diageo PLC ADR |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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