Correlation Between Macys and IShares US

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Macys and IShares US 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 IShares US into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Macys Inc and IShares US Technology, you can compare the effects of market volatilities on Macys and IShares US 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 IShares US. Check out your portfolio center. Please also check ongoing floating volatility patterns of Macys and IShares US.

Diversification Opportunities for Macys and IShares US

0.38
  Correlation Coefficient

Weak diversification

The 3 months correlation between Macys and IShares is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Macys Inc and IShares US Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IShares US Technology 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 IShares US. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IShares US Technology has no effect on the direction of Macys i.e., Macys and IShares US go up and down completely randomly.

Pair Corralation between Macys and IShares US

Taking into account the 90-day investment horizon Macys Inc is expected to generate 3.48 times more return on investment than IShares US. However, Macys is 3.48 times more volatile than IShares US Technology. It trades about 0.12 of its potential returns per unit of risk. IShares US Technology is currently generating about 0.11 per unit of risk. If you would invest  1,826  in Macys Inc on December 30, 2023 and sell it today you would earn a total of  173.00  from holding Macys Inc or generate 9.47% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Macys Inc  vs.  IShares US Technology

 Performance 
       Timeline  
Macys Inc 

Risk-Adjusted Performance

1 of 100

 
Low
 
High
Weak
Compared to the overall equity markets, risk-adjusted returns on investments in Macys Inc are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy primary indicators, Macys is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.
IShares US Technology 

Risk-Adjusted Performance

13 of 100

 
Low
 
High
OK
Compared to the overall equity markets, risk-adjusted returns on investments in IShares US Technology are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain basic indicators, IShares US showed solid returns over the last few months and may actually be approaching a breakup point.

Macys and IShares US Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Macys and IShares US

The main advantage of trading using opposite Macys and IShares US positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Macys position performs unexpectedly, IShares US 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 IShares US will offset losses from the drop in IShares US's long position.
The idea behind Macys Inc and IShares US Technology pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Commodity Directory module to find actively traded commodities issued by global exchanges.

Other Complementary Tools

Equity Forecasting
Use basic forecasting models to generate price predictions and determine price momentum
Price Transformation
Use Price Transformation models to analyze the depth of different equity instruments across global markets
Theme Ratings
Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance
My Watchlist Analysis
Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like
Portfolio Rebalancing
Analyze risk-adjusted returns against different time horizons to find asset-allocation targets
AI Investment Finder
Use AI to screen and filter profitable investment opportunities
Price Exposure Probability
Analyze equity upside and downside potential for a given time horizon across multiple markets
AI Portfolio Architect
Use AI to generate optimal portfolios and find profitable investment opportunities
Financial Widgets
Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets
Economic Indicators
Top statistical indicators that provide insights into how an economy is performing
Fundamentals Comparison
Compare fundamentals across multiple equities to find investing opportunities
Balance Of Power
Check stock momentum by analyzing Balance Of Power indicator and other technical ratios
Pattern Recognition
Use different Pattern Recognition models to time the market across multiple global exchanges