This module allows you to analyze existing cross correlation between Fossil Group and Macys. You can compare the effects of market volatilities on Fossil 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 Fossil with a short position of Macys. See also your portfolio center. Please also check ongoing floating volatility patterns of Fossil and Macys.
Given the investment horizon of 30 days, Fossil Group is expected to under-perform the Macys. In addition to that, Fossil is 2.09 times more volatile than Macys. It trades about -0.06 of its total potential returns per unit of risk. Macys is currently generating about -0.07 per unit of volatility. If you would invest 3,888 in Macys on June 19, 2018 and sell it today you would lose (118.00) from holding Macys or give up 3.03% of portfolio value over 30 days.
Overlapping area represents the amount of risk that can be diversified away by holding Fossil Group Inc and Macys Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Macys and Fossil 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 Fossil Group 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 has no effect on the direction of Fossil i.e. Fossil and Macys go up and down completely randomly.
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