This module allows you to analyze existing cross correlation between Macys Inc and Dollar General Corporation. You can compare the effects of market volatilities on Macys and Dollar General 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 Dollar General. See also your portfolio center
. Please also check ongoing floating volatility patterns of Macys
and Dollar General
Macys Inc vs Dollar General Corp.
Taking into account the 30 trading days horizon, Macys Inc is expected to generate 1.36 times more return on investment than Dollar General. However, Macys is 1.36 times more volatile than Dollar General Corporation. It trades about -0.01 of its potential returns per unit of risk. Dollar General Corporation is currently generating about -0.07 per unit of risk. If you would invest 2,660 in Macys Inc on January 18, 2018 and sell it today you would lose (34.00) from holding Macys Inc or give up 1.28% of portfolio value over 30 days.
|Time Period||1 Month [change]|
Very poor diversification
Overlapping area represents the amount of risk that can be diversified away by holding Macys Inc and Dollar General Corp. in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Dollar General 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 Dollar General. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dollar General has no effect on the direction of Macys i.e. Macys and Dollar General 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 Dollar General Corporation has generated negative risk-adjusted returns adding no value to investors with long positions.