Correlation Between Bon-Ton Stores and Macys
Can any of the company-specific risk be diversified away by investing in both Bon-Ton Stores and Macys 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 Bon-Ton Stores and Macys into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Bon Ton Stores and Macys Inc, you can compare the effects of market volatilities on Bon-Ton Stores 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 Bon-Ton Stores with a short position of Macys. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bon-Ton Stores and Macys.
Diversification Opportunities for Bon-Ton Stores and Macys
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bon-Ton and Macys is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding The Bon Ton Stores and Macys Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Macys Inc and Bon-Ton Stores 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 The Bon Ton Stores 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 Bon-Ton Stores i.e., Bon-Ton Stores and Macys go up and down completely randomly.
Pair Corralation between Bon-Ton Stores and Macys
If you would invest (100.00) in The Bon Ton Stores on January 24, 2024 and sell it today you would earn a total of 100.00 from holding The Bon Ton Stores or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
The Bon Ton Stores vs. Macys Inc
Performance |
| Timeline |
| Bon-Ton Stores |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Macys Inc |
Bon-Ton Stores and Macys Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bon-Ton Stores and Macys
The main advantage of trading using opposite Bon-Ton Stores and Macys positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bon-Ton Stores 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.| Bon-Ton Stores vs. MYT Netherlands Parent | Bon-Ton Stores vs. Hudson Technologies | Bon-Ton Stores vs. Simon Property Group | Bon-Ton Stores vs. GMS Inc |
| Macys vs. Marks Spencer Group | Macys vs. Marks and Spencer | Macys vs. Dillards Capital Trust | Macys vs. Companhia Brasileira de |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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