Correlation Between Macys and Cooper Stnd

Can any of the company-specific risk be diversified away by investing in both Macys and Cooper Stnd 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 Cooper Stnd into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Macys Inc and Cooper Stnd, you can compare the effects of market volatilities on Macys and Cooper Stnd 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 Cooper Stnd. Check out your portfolio center. Please also check ongoing floating volatility patterns of Macys and Cooper Stnd.

Diversification Opportunities for Macys and Cooper Stnd

0.53

Correlation Coefficient

Macys  Cooper Stnd

Very weak diversification

The 3 months correlation between Macys and Cooper is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Macys Inc and Cooper Stnd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cooper Stnd 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 Cooper Stnd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cooper Stnd has no effect on the direction of Macys i.e., Macys and Cooper Stnd go up and down completely randomly.

Pair Corralation between Macys and Cooper Stnd

Taking into account the 90-day investment horizon Macys Inc is expected to generate 1.04 times more return on investment than Cooper Stnd. However, Macys is 1.04 times more volatile than Cooper Stnd. It trades about 0.03 of its potential returns per unit of risk. Cooper Stnd is currently generating about 0.01 per unit of risk. If you would invest  1,248  in Macys Inc on May 3, 2025 and sell it today you would earn a total of  15.00  from holding Macys Inc or generate 1.2% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	95.45%
Values	Daily Returns

Macys Inc  vs.  Cooper Stnd

Macys Inc

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Macys Inc are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of very uncertain primary indicators, Macys may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Cooper Stnd

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Cooper Stnd are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unfluctuating basic indicators, Cooper Stnd may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Macys and Cooper Stnd

The main advantage of trading using opposite Macys and Cooper Stnd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Macys position performs unexpectedly, Cooper Stnd 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 Cooper Stnd will offset losses from the drop in Cooper Stnd's long position.

The idea behind Macys Inc and Cooper Stnd 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.

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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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.