Correlation Between Altaba and Macys
Can any of the company-specific risk be diversified away by investing in both Altaba 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 Altaba and Macys into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Altaba Inc and Macys Inc, you can compare the effects of market volatilities on Altaba 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 Altaba with a short position of Macys. Check out your portfolio center. Please also check ongoing floating volatility patterns of Altaba and Macys.
Diversification Opportunities for Altaba and Macys
Pay attention - limited upside
The 3 months correlation between Altaba and Macys is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Altaba Inc and Macys Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Macys Inc and Altaba 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 Altaba Inc 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 Altaba i.e., Altaba and Macys go up and down completely randomly.
Pair Corralation between Altaba and Macys
If you would invest 2,195 in Macys Inc on January 20, 2024 and sell it today you would lose (291.00) from holding Macys Inc or give up 13.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Altaba Inc vs. Macys Inc
Performance |
| Timeline |
| Altaba Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Macys Inc |
Altaba and Macys Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Altaba and Macys
The main advantage of trading using opposite Altaba and Macys positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Altaba 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.| 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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