Correlation Between Macys and DISH Network
Can any of the company-specific risk be diversified away by investing in both Macys and DISH Network 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 DISH Network into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Macys Inc and DISH Network, you can compare the effects of market volatilities on Macys and DISH Network 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 DISH Network. Check out your portfolio center. Please also check ongoing floating volatility patterns of Macys and DISH Network.
Diversification Opportunities for Macys and DISH Network
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Macys and DISH is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Macys Inc and DISH Network in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DISH Network 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 DISH Network. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DISH Network has no effect on the direction of Macys i.e., Macys and DISH Network go up and down completely randomly.
Pair Corralation between Macys and DISH Network
If you would invest 1,811 in Macys Inc on January 20, 2024 and sell it today you would earn a total of 93.00 from holding Macys Inc or generate 5.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 1.59% |
| Values | Daily Returns |
Macys Inc vs. DISH Network
Performance |
| Timeline |
| Macys Inc |
| DISH Network |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Macys and DISH Network Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Macys and DISH Network
The main advantage of trading using opposite Macys and DISH Network positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Macys position performs unexpectedly, DISH Network 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 DISH Network will offset losses from the drop in DISH Network's long position.| Macys vs. Dillards | Macys vs. Marks Spencer Group | Macys vs. Marks and Spencer | Macys vs. Dillards Capital Trust |
| DISH Network vs. Verizon Communications | DISH Network vs. ATT Inc | DISH Network vs. Comcast Corp | DISH Network vs. Charter Communications |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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