Correlation Between Caseys General and Macys
Can any of the company-specific risk be diversified away by investing in both Caseys General 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 Caseys General and Macys into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Caseys General Stores and Macys Inc, you can compare the effects of market volatilities on Caseys General 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 Caseys General with a short position of Macys. Check out your portfolio center. Please also check ongoing floating volatility patterns of Caseys General and Macys.
Diversification Opportunities for Caseys General and Macys
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Caseys and Macys is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Caseys General Stores and Macys Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Macys Inc and Caseys General 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 Caseys General Stores 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 Caseys General i.e., Caseys General and Macys go up and down completely randomly.
Pair Corralation between Caseys General and Macys
Given the investment horizon of 90 days Caseys General Stores is expected to generate 0.45 times more return on investment than Macys. However, Caseys General Stores is 2.21 times less risky than Macys. It trades about 0.1 of its potential returns per unit of risk. Macys Inc is currently generating about 0.04 per unit of risk. If you would invest 22,135 in Caseys General Stores on January 21, 2024 and sell it today you would earn a total of 8,906 from holding Caseys General Stores or generate 40.23% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Caseys General Stores vs. Macys Inc
Performance |
Timeline |
Caseys General Stores |
Macys Inc |
Caseys General and Macys Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Caseys General and Macys
The main advantage of trading using opposite Caseys General and Macys positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Caseys General 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.Caseys General vs. LesliesInc | Caseys General vs. Sally Beauty Holdings | Caseys General vs. ODP Corp | Caseys General vs. 1 800 FLOWERSCOM |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
Bonds Directory Find actively traded corporate debentures issued by US companies | |
Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
Share Portfolio Track or share privately all of your investments from the convenience of any device | |
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |