Pair Correlation Between DOW and Macys

This module allows you to analyze existing cross correlation between DOW and Macys Inc. You can compare the effects of market volatilities on DOW 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 DOW with a short position of Macys. See also your portfolio center. Please also check ongoing floating volatility patterns of DOW and Macys.
 Time Horizon     30 Days    Login   to change
 DOW  vs   Macys Inc
 Performance (%) 

Pair Volatility

Given the investment horizon of 30 days, DOW is expected to generate 618.9 times less return on investment than Macys. But when comparing it to its historical volatility, DOW is 2.24 times less risky than Macys. It trades about 0.0 of its potential returns per unit of risk. Macys Inc is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest  2,565  in Macys Inc on February 17, 2018 and sell it today you would earn a total of  325.00  from holding Macys Inc or generate 12.67% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between DOW and Macys


Time Period1 Month [change]
ValuesDaily Returns


Good diversification

Overlapping area represents the amount of risk that can be diversified away by holding DOW and Macys Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Macys Inc and DOW 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 DOW 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 Inc has no effect on the direction of DOW i.e. DOW and Macys go up and down completely randomly.

Comparative Volatility

 Predicted Return Density