This module allows you to analyze existing cross correlation between The TJX Companies and Macys. You can compare the effects of market volatilities on T.J. Maxx 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 T.J. Maxx with a short position of Macys. See also your portfolio center. Please also check ongoing floating volatility patterns of T.J. Maxx and Macys.
Considering 30-days investment horizon, T.J. Maxx is expected to generate 2.02 times less return on investment than Macys. But when comparing it to its historical volatility, The TJX Companies is 1.41 times less risky than Macys. It trades about 0.11 of its potential returns per unit of risk. Macys is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 2,674 in Macys on March 25, 2018 and sell it today you would earn a total of 378.00 from holding Macys or generate 14.14% return on investment over 30 days.
Overlapping area represents the amount of risk that can be diversified away by holding The TJX Companies Inc and Macys Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Macys and T.J. Maxx 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 The TJX Companies 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 has no effect on the direction of T.J. Maxx i.e. T.J. Maxx and Macys go up and down completely randomly.
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