This module allows you to analyze existing cross correlation between Alphabet Inc and Macys Inc. You can compare the effects of market volatilities on Alphabet 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 Alphabet with a short position of Macys. See also your portfolio center
. Please also check ongoing floating volatility patterns of Alphabet
Alphabet Inc vs Macys Inc
Given the investment horizon of 30 days, Alphabet Inc is expected to generate 0.54 times more return on investment than Macys. However, Alphabet Inc is 1.84 times less risky than Macys. It trades about 0.46 of its potential returns per unit of risk. Macys Inc is currently generating about -0.32 per unit of risk. If you would invest 91,500 in Alphabet Inc on September 17, 2017 and sell it today you would earn a total of 7,700 from holding Alphabet Inc or generate 8.42% return on investment over 30 days.
|Time Period||1 Month [change]|
Overlapping area represents the amount of risk that can be diversified away by holding Alphabet Inc and Macys Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Macys Inc and Alphabet 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 Alphabet Inc 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 Alphabet i.e. Alphabet and Macys go up and down completely randomly.
Compared to the overall equity markets, risk-adjusted returns on investments in Alphabet Inc are ranked lower than 31 (%) of all global equities and portfolios over the last 30 days.
Over the last 30 days Macys Inc has generated negative risk-adjusted returns adding no value to investors with long positions.