Correlation Between Novocure and Macys

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

Diversification Opportunities for Novocure and Macys

0.18
  Correlation Coefficient

Average diversification

The 3 months correlation between Novocure and Macys is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Novocure and Macys Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Macys Inc and Novocure 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 Novocure 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 Novocure i.e., Novocure and Macys go up and down completely randomly.

Pair Corralation between Novocure and Macys

Given the investment horizon of 90 days Novocure is expected to under-perform the Macys. In addition to that, Novocure is 1.12 times more volatile than Macys Inc. It trades about -0.01 of its total potential returns per unit of risk. Macys Inc is currently generating about 0.12 per unit of volatility. 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 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Novocure  vs.  Macys Inc

 Performance 
       Timeline  
Novocure 

Risk-Adjusted Performance

3 of 100

 
Low
 
High
Weak
Compared to the overall equity markets, risk-adjusted returns on investments in Novocure are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Even with relatively inconsistent fundamental indicators, Novocure reported solid returns over the last few months and may actually be approaching a breakup point.
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.

Novocure and Macys Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Novocure and Macys

The main advantage of trading using opposite Novocure and Macys positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Novocure 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.
The idea behind Novocure and Macys Inc 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..

Other Complementary Tools

CEOs Directory
Screen CEOs from public companies around the world
Insider Screener
Find insiders across different sectors to evaluate their impact on performance
Pattern Recognition
Use different Pattern Recognition models to time the market across multiple global exchanges
Volatility Analysis
Get historical volatility and risk analysis based on latest market data
Crypto Correlations
Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins
AI Investment Finder
Use AI to screen and filter profitable investment opportunities