Correlation Between Walmart and MACYS
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By analyzing existing cross correlation between Walmart and MACYS RETAIL HLDGS, you can compare the effects of market volatilities on Walmart 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 Walmart with a short position of MACYS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walmart and MACYS.
Diversification Opportunities for Walmart and MACYS
Excellent diversification
The 3 months correlation between Walmart and MACYS is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Walmart 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 Walmart 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 Walmart 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 Walmart i.e., Walmart and MACYS go up and down completely randomly.
Pair Corralation between Walmart and MACYS
Considering the 90-day investment horizon Walmart is expected to generate 0.95 times more return on investment than MACYS. However, Walmart is 1.06 times less risky than MACYS. It trades about 0.49 of its potential returns per unit of risk. MACYS RETAIL HLDGS is currently generating about -0.13 per unit of risk. If you would invest 8,421 in Walmart on September 12, 2024 and sell it today you would earn a total of 1,034 from holding Walmart or generate 12.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 90.48% |
| Values | Daily Returns |
Walmart vs. MACYS RETAIL HLDGS
Performance |
| Timeline |
| Walmart |
| MACYS RETAIL HLDGS |
Walmart and MACYS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walmart and MACYS
The main advantage of trading using opposite Walmart and MACYS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walmart 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.| Walmart vs. Costco Wholesale Corp | Walmart vs. Dollar Tree | Walmart vs. BJs Wholesale Club | Walmart vs. Target |
| MACYS vs. United Utilities Group | MACYS vs. Brunswick | MACYS vs. Life Time Group | MACYS vs. Marine Products |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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