Correlation Between Macys and JanOne
Can any of the company-specific risk be diversified away by investing in both Macys and JanOne 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 Macys and JanOne into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Macys Inc and JanOne Inc, you can compare the effects of market volatilities on Macys and JanOne 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 Macys with a short position of JanOne. Check out your portfolio center. Please also check ongoing floating volatility patterns of Macys and JanOne.
Diversification Opportunities for Macys and JanOne
Pay attention - limited upside
The 3 months correlation between Macys and JanOne is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Macys Inc and JanOne Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JanOne Inc and Macys 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 Macys Inc are associated (or correlated) with JanOne. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JanOne Inc has no effect on the direction of Macys i.e., Macys and JanOne go up and down completely randomly.
Pair Corralation between Macys and JanOne
If you would invest (100.00) in JanOne Inc on January 26, 2024 and sell it today you would earn a total of 100.00 from holding JanOne Inc 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 |
Macys Inc vs. JanOne Inc
Performance |
| Timeline |
| Macys Inc |
| JanOne Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Macys and JanOne Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Macys and JanOne
The main advantage of trading using opposite Macys and JanOne positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Macys position performs unexpectedly, JanOne 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 JanOne will offset losses from the drop in JanOne's long position.| Macys vs. Marks Spencer Group | Macys vs. Marks and Spencer | Macys vs. Dillards Capital Trust | Macys vs. Companhia Brasileira de |
| JanOne vs. Calliditas Therapeutics | JanOne vs. Analog Devices | JanOne vs. Iridium Communications | JanOne vs. Minerals Technologies |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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