This module allows you to analyze existing cross correlation between Macys Inc and The Bon Ton Stores Inc. You can compare the effects of market volatilities on Macys and Bon Ton 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. See also your portfolio center
. Please also check ongoing floating volatility patterns of Macys
and Bon Ton
Macys Inc vs The Bon Ton Stores Inc
Taking into account the 30 trading days horizon, Macys is expected to generate 26.31 times less return on investment than Bon Ton. But when comparing it to its historical volatility, Macys Inc is 31.87 times less risky than Bon Ton. It trades about 0.23 of its potential returns per unit of risk. The Bon Ton Stores Inc is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 9.10 in The Bon Ton Stores Inc on February 16, 2018 and sell it today you would earn a total of 0.00 from holding The Bon Ton Stores Inc or generate 0.0% return on investment over 30 days.
|Time Period||1 Month [change]|
Very good diversification
Overlapping area represents the amount of risk that can be diversified away by holding Macys Inc and The Bon Ton Stores Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on The Bon Ton 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. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of The Bon Ton has no effect on the direction of Macys i.e. Macys and Bon Ton go up and down completely randomly.
Compared to the overall equity markets, risk-adjusted returns on investments in Macys Inc are ranked lower than 15 (%) of all global equities and portfolios over the last 30 days.
Compared to the overall equity markets, risk-adjusted returns on investments in The Bon Ton Stores Inc are ranked lower than 12 (%) of all global equities and portfolios over the last 30 days.