Correlation Between State Auto and Macys
Can any of the company-specific risk be diversified away by investing in both State Auto and Macys 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 State Auto and Macys into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between State Auto Financial and Macys Inc, you can compare the effects of market volatilities on State Auto 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 State Auto with a short position of Macys. Check out your portfolio center. Please also check ongoing floating volatility patterns of State Auto and Macys.
Diversification Opportunities for State Auto and Macys
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between State and Macys is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding State Auto Financial and Macys Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Macys Inc and State Auto 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 State Auto Financial 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 State Auto i.e., State Auto and Macys go up and down completely randomly.
Pair Corralation between State Auto and Macys
If you would invest 1,113 in Macys Inc on January 19, 2024 and sell it today you would earn a total of 788.00 from holding Macys Inc or generate 70.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
State Auto Financial vs. Macys Inc
Performance |
| Timeline |
| State Auto Financial |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Macys Inc |
State Auto and Macys Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with State Auto and Macys
The main advantage of trading using opposite State Auto and Macys positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if State Auto position performs unexpectedly, Macys 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 Macys will offset losses from the drop in Macys' long position.| State Auto vs. Western Asset Investment | State Auto vs. Aegon NV ADR | State Auto vs. Millennium Investment Acquisition | State Auto vs. SEI Investments |
| Macys vs. Marks Spencer Group | Macys vs. Marks and Spencer | Macys vs. Dillards Capital Trust | Macys vs. Companhia Brasileira de |
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 AI Investment Finder module to use AI to screen and filter profitable investment opportunities.
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