This module allows you to analyze existing cross correlation between Macys and Ford Motor Company. You can compare the effects of market volatilities on Macys and Ford Motor 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 Ford Motor. See also your portfolio center
. Please also check ongoing floating volatility patterns of Macys
and Ford Motor
Over the last 30 days Macys has generated negative risk-adjusted returns adding no value to investors with long positions.
Compared to the overall equity markets, risk-adjusted returns on investments in Ford Motor Company are ranked lower than 2 (%) of all global equities and portfolios over the last 30 days.
Macys and Ford Motor Volatility Contrast
Macys Inc vs. Ford Motor Company
Taking into account the 30 trading days horizon, Macys is expected to under-perform the Ford Motor. In addition to that, Macys is 1.1 times more volatile than Ford Motor Company. It trades about -0.04 of its total potential returns per unit of risk. Ford Motor Company is currently generating about 0.03 per unit of volatility. If you would invest 851.00 in Ford Motor Company on November 17, 2018 and sell it today you would earn a total of 19.50 from holding Ford Motor Company or generate 2.29% return on investment over 30 days.
Pair Corralation between Macys and Ford Motor
|Time Period||2 Months [change]|
Diversification Opportunities for Macys and Ford Motor
Overlapping area represents the amount of risk that can be diversified away by holding Macys Inc and Ford Motor Company in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Ford Motor 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 are associated (or correlated) with Ford Motor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ford Motor has no effect on the direction of Macys i.e. Macys and Ford Motor go up and down completely randomly.