This module allows you to analyze existing cross correlation between Macys Inc and BonTon Stores Inc. You can compare the effects of market volatilities on Macys and BonTon 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 BonTon Stores. See also your portfolio center
. Please also check ongoing floating volatility patterns of Macys
and BonTon Stores
Macys Inc. vs BonTon Stores Inc.
Taking into account the 30 trading days horizon, Macys Inc is expected to generate 0.4 times more return on investment than BonTon Stores. However, Macys Inc is 2.48 times less risky than BonTon Stores. It trades about -0.45 of its potential returns per unit of risk. BonTon Stores Inc is currently generating about -0.55 per unit of risk. If you would invest 3,357 in Macys Inc on February 25, 2017 and sell it today you would lose (540.00) from holding Macys Inc or give up 16.09% of portfolio value over 30 days.
|Time Period||1 Month [change]|
Almost no diversification
Overlapping area represents the amount of risk that can be diversified away by holding Macys Inc. and BonTon Stores Inc. in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on BonTon 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 BonTon Stores. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BonTon Stores has no effect on the direction of Macys i.e. Macys and BonTon Stores go up and down completely randomly.
Over the last 30 days Macys Inc has generated negative risk-adjusted returns adding no value to investors with long positions.
Over the last 30 days BonTon Stores Inc has generated negative risk-adjusted returns adding no value to investors with long positions.