This module allows you to analyze existing cross correlation between Macys Inc and Visa Inc. You can compare the effects of market volatilities on Macys and Visa 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 Visa. See also your portfolio center
. Please also check ongoing floating volatility patterns of Macys
Macys Inc vs Visa Inc
Taking into account the 30 trading days horizon, Macys Inc is expected to under-perform the Visa. In addition to that, Macys is 3.68 times more volatile than Visa Inc. It trades about -0.05 of its total potential returns per unit of risk. Visa Inc is currently generating about 0.41 per unit of volatility. If you would invest 10,302 in Visa Inc on September 24, 2017 and sell it today you would earn a total of 451 from holding Visa Inc or generate 4.38% 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 Visa Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Visa 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 Visa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Visa Inc has no effect on the direction of Macys i.e. Macys and Visa 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.
Compared to the overall equity markets, risk-adjusted returns on investments in Visa Inc are ranked lower than 27 (%) of all global equities and portfolios over the last 30 days.