Correlation Between Macys and Altaba
Can any of the company-specific risk be diversified away by investing in both Macys and Altaba at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Macys and Altaba into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Macys Inc and Altaba Inc, you can compare the effects of market volatilities on Macys and Altaba 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 Altaba. Check out your portfolio center. Please also check ongoing floating volatility patterns of Macys and Altaba.
Diversification Opportunities for Macys and Altaba
Pay attention - limited upside
The 3 months correlation between Macys and Altaba is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Macys Inc and Altaba Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Altaba 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 Altaba. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Altaba Inc has no effect on the direction of Macys i.e., Macys and Altaba go up and down completely randomly.
Pair Corralation between Macys and Altaba
If you would invest (100.00) in Altaba Inc on January 20, 2024 and sell it today you would earn a total of 100.00 from holding Altaba Inc or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Macys Inc vs. Altaba Inc
Performance |
| Timeline |
| Macys Inc |
| Altaba Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Macys and Altaba Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Macys and Altaba
The main advantage of trading using opposite Macys and Altaba positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Macys position performs unexpectedly, Altaba can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Altaba will offset losses from the drop in Altaba's long position.| Macys vs. Marks Spencer Group | Macys vs. Marks and Spencer | Macys vs. Dillards Capital Trust | Macys vs. Companhia Brasileira de |
| Altaba vs. Alliant Energy Corp | Altaba vs. 51Talk Online Education | Altaba vs. Western Midstream Partners | Altaba vs. Meta Data |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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