Correlation Analysis Between Alphabet and Macys

This module allows you to analyze existing cross correlation between Alphabet and Macys. 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 and Macys.
 Time Horizon     30 Days    Login   to change
Symbolsvs

Alphabet Inc  vs.  Macys Inc

 Performance (%) 
      Timeline 

Pair Volatility

Given the investment horizon of 30 days, Alphabet is expected to generate 1.78 times less return on investment than Macys. But when comparing it to its historical volatility, Alphabet is 2.34 times less risky than Macys. It trades about 0.28 of its potential returns per unit of risk. Macys is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest  3,348  in Macys on May 23, 2018 and sell it today you would earn a total of  412.00  from holding Macys or generate 12.31% return on investment over 30 days.

Pair Corralation between Alphabet and Macys

0.79
Time Period1 Month [change]
DirectionPositive 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Diversification

Poor diversification

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 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 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 Alphabet i.e. Alphabet and Macys go up and down completely randomly.

Comparative Volatility

 Predicted Return Density 
      Returns 
Alphabet  
18 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Alphabet are ranked lower than 18 (%) of all global equities and portfolios over the last 30 days.
Macys  
14 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Macys are ranked lower than 14 (%) of all global equities and portfolios over the last 30 days.

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GOOG - USA Stock
Alphabet
Specialization
IT, Search Cloud And Integrated IT Services
Business Address1600 Amphitheatre Parkway
ExchangeNASDAQ
$1155.48

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