This module allows you to analyze existing cross correlation between Macys Inc and Alphabet Inc. You can compare the effects of market volatilities on Macys and Alphabet 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 Alphabet. See also your portfolio center
. Please also check ongoing floating volatility patterns of Macys
Macys Inc vs Alphabet Inc
Taking into account the 30 trading days horizon, Macys Inc is expected to generate 1.22 times more return on investment than Alphabet. However, Macys is 1.22 times more volatile than Alphabet Inc. It trades about 0.33 of its potential returns per unit of risk. Alphabet Inc is currently generating about 0.0 per unit of risk. If you would invest 2,565 in Macys Inc on February 18, 2018 and sell it today you would earn a total of 365.00 from holding Macys Inc or generate 14.23% return on investment over 30 days.
|Time Period||1 Month [change]|
Overlapping area represents the amount of risk that can be diversified away by holding Macys Inc and Alphabet Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Alphabet Inc 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 Alphabet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alphabet Inc has no effect on the direction of Macys i.e. Macys and Alphabet go up and down completely randomly.
Compared to the overall equity markets, risk-adjusted returns on investments in Macys Inc are ranked lower than 21 (%) of all global equities and portfolios over the last 30 days.
Over the last 30 days Alphabet Inc has generated negative risk-adjusted returns adding no value to investors with long positions.