Correlation Between Macys and Bon-Ton Stores
Can any of the company-specific risk be diversified away by investing in both Macys and Bon-Ton Stores 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 Bon-Ton Stores into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Macys Inc and The Bon Ton Stores, you can compare the effects of market volatilities on Macys and Bon-Ton Stores 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 Bon-Ton Stores. Check out your portfolio center. Please also check ongoing floating volatility patterns of Macys and Bon-Ton Stores.
Diversification Opportunities for Macys and Bon-Ton Stores
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Macys and Bon-Ton is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Macys Inc and The Bon Ton Stores in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bon-Ton Stores 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 Bon-Ton Stores. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bon-Ton Stores has no effect on the direction of Macys i.e., Macys and Bon-Ton Stores go up and down completely randomly.
Pair Corralation between Macys and Bon-Ton Stores
If you would invest (100.00) in The Bon Ton Stores on January 25, 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 |
Macys Inc vs. The Bon Ton Stores
Performance |
| Timeline |
| Macys Inc |
| Bon-Ton Stores |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Macys and Bon-Ton Stores Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Macys and Bon-Ton Stores
The main advantage of trading using opposite Macys and Bon-Ton Stores positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Macys position performs unexpectedly, Bon-Ton Stores 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 Bon-Ton Stores will offset losses from the drop in Bon-Ton Stores' long position.| Macys vs. Marks Spencer Group | Macys vs. Marks and Spencer | Macys vs. Dillards Capital Trust | Macys vs. Companhia Brasileira de |
| Bon-Ton Stores vs. Discover Financial Services | Bon-Ton Stores vs. Upper Street Marketing | Bon-Ton Stores vs. KeyCorp | Bon-Ton Stores vs. Encore Capital Group |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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