Correlation Between Macys and Gogoro

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

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

Diversification Opportunities for Macys and Gogoro

0.73

Correlation Coefficient

Macys  Gogoro

Poor diversification

The 3 months correlation between Macys and Gogoro is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Macys Inc and Gogoro Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gogoro Inc 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 Gogoro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gogoro Inc has no effect on the direction of Macys i.e., Macys and Gogoro go up and down completely randomly.

Pair Corralation between Macys and Gogoro

Taking into account the 90-day investment horizon Macys Inc is expected to generate 0.81 times more return on investment than Gogoro. However, Macys Inc is 1.24 times less risky than Gogoro. It trades about -0.16 of its potential returns per unit of risk. Gogoro Inc is currently generating about -0.17 per unit of risk. If you would invest  1,786  in Macys Inc on December 26, 2024 and sell it today you would lose (428.00) from holding Macys Inc or give up 23.96% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Macys Inc  vs.  Gogoro Inc

Macys Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Macys Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's primary indicators remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Gogoro Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Gogoro Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's technical and fundamental indicators remain relatively invariable which may send shares a bit higher in April 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with Macys and Gogoro

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

The idea behind Macys Inc and Gogoro 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.

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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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.