This module allows you to analyze existing cross correlation between Rite Aid Corporation and Macys Inc. You can compare the effects of market volatilities on Rite Aid and Macys 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 Rite Aid with a short position of Macys. See also your portfolio center
. Please also check ongoing floating volatility patterns of Rite Aid
Rite Aid Corp. vs Macys Inc
Considering 30-days investment horizon, Rite Aid Corporation is expected to under-perform the Macys. In addition to that, Rite Aid is 3.11 times more volatile than Macys Inc. It trades about -0.35 of its total potential returns per unit of risk. Macys Inc is currently generating about -0.32 per unit of volatility. If you would invest 2,210 in Macys Inc on September 17, 2017 and sell it today you would lose (221) from holding Macys Inc or give up 10.0% 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 Rite Aid Corp. and Macys Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Macys Inc and Rite Aid 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 Rite Aid Corporation are associated (or correlated) with Macys. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Macys Inc has no effect on the direction of Rite Aid i.e. Rite Aid and Macys go up and down completely randomly.
Over the last 30 days Rite Aid Corporation has generated negative risk-adjusted returns adding no value to investors with long positions.
Over the last 30 days Macys Inc has generated negative risk-adjusted returns adding no value to investors with long positions.