Correlation Between Cnova NV and Macys
Can any of the company-specific risk be diversified away by investing in both Cnova NV 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 Cnova NV and Macys into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cnova NV and Macys Inc, you can compare the effects of market volatilities on Cnova NV 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 Cnova NV with a short position of Macys. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cnova NV and Macys.
Diversification Opportunities for Cnova NV and Macys
Pay attention - limited upside
The 3 months correlation between Cnova and Macys is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Cnova NV and Macys Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Macys Inc and Cnova NV 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 Cnova NV 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 Cnova NV i.e., Cnova NV and Macys go up and down completely randomly.
Pair Corralation between Cnova NV and Macys
If you would invest 1,914 in Macys Inc on January 25, 2024 and sell it today you would lose (40.00) from holding Macys Inc or give up 2.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Cnova NV vs. Macys Inc
Performance |
| Timeline |
| Cnova NV |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Macys Inc |
Cnova NV and Macys Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cnova NV and Macys
The main advantage of trading using opposite Cnova NV and Macys positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cnova NV 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.| Cnova NV vs. US Silica Holdings | Cnova NV vs. Grocery Outlet Holding | Cnova NV vs. Forsys Metals Corp | Cnova NV vs. Marfrig Global Foods |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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