Correlation Between MACYS and Emerson Radio
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By analyzing existing cross correlation between MACYS RETAIL HLDGS and Emerson Radio, you can compare the effects of market volatilities on MACYS and Emerson Radio 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 Emerson Radio. Check out your portfolio center. Please also check ongoing floating volatility patterns of MACYS and Emerson Radio.
Diversification Opportunities for MACYS and Emerson Radio
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MACYS and Emerson is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding MACYS RETAIL HLDGS and Emerson Radio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Emerson Radio 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 RETAIL HLDGS are associated (or correlated) with Emerson Radio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Emerson Radio has no effect on the direction of MACYS i.e., MACYS and Emerson Radio go up and down completely randomly.
Pair Corralation between MACYS and Emerson Radio
Assuming the 90 days trading horizon MACYS RETAIL HLDGS is expected to under-perform the Emerson Radio. But the bond apears to be less risky and, when comparing its historical volatility, MACYS RETAIL HLDGS is 2.06 times less risky than Emerson Radio. The bond trades about 0.0 of its potential returns per unit of risk. The Emerson Radio is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 55.00 in Emerson Radio on October 24, 2024 and sell it today you would lose (4.00) from holding Emerson Radio or give up 7.27% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 93.12% |
Values | Daily Returns |
MACYS RETAIL HLDGS vs. Emerson Radio
Performance |
Timeline |
MACYS RETAIL HLDGS |
Emerson Radio |
MACYS and Emerson Radio Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with MACYS and Emerson Radio
The main advantage of trading using opposite MACYS and Emerson Radio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MACYS position performs unexpectedly, Emerson Radio 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 Emerson Radio will offset losses from the drop in Emerson Radio's long position.MACYS vs. Marfrig Global Foods | MACYS vs. BioNTech SE | MACYS vs. Analog Devices | MACYS vs. Astral Foods Limited |
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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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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