Correlation Between Vodka Brands and Macys
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By analyzing existing cross correlation between Vodka Brands Corp and Macys Retail Holdings, you can compare the effects of market volatilities on Vodka 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 Vodka Brands with a short position of Macys. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vodka Brands and Macys.
Diversification Opportunities for Vodka Brands and Macys
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Vodka and Macys is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Vodka Brands Corp 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 Vodka 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 Vodka Brands Corp 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 Vodka Brands i.e., Vodka Brands and Macys go up and down completely randomly.
Pair Corralation between Vodka Brands and Macys
Given the investment horizon of 90 days Vodka Brands Corp is expected to generate 0.95 times more return on investment than Macys. However, Vodka Brands Corp is 1.05 times less risky than Macys. It trades about 0.22 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 99.00 in Vodka Brands Corp on September 12, 2024 and sell it today you would earn a total of 13.00 from holding Vodka Brands Corp or generate 13.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Vodka Brands Corp vs. Macys Retail Holdings
Performance |
| Timeline |
| Vodka Brands Corp |
| Macys Retail Holdings |
Vodka Brands and Macys Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vodka Brands and Macys
The main advantage of trading using opposite Vodka Brands and Macys positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vodka 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.| Vodka Brands vs. Andrew Peller Limited | Vodka Brands vs. Aristocrat Group Corp | Vodka Brands vs. Iconic Brands | Vodka Brands vs. Naked Wines plc |
| 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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