Correlation Between Whole Foods and Macys
Can any of the company-specific risk be diversified away by investing in both Whole Foods 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 Whole Foods and Macys into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Whole Foods Market and Macys Inc, you can compare the effects of market volatilities on Whole Foods 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 Whole Foods with a short position of Macys. Check out your portfolio center. Please also check ongoing floating volatility patterns of Whole Foods and Macys.
Diversification Opportunities for Whole Foods and Macys
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Whole and Macys is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Whole Foods Market and Macys Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Macys Inc and Whole Foods 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 Whole Foods Market 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 Whole Foods i.e., Whole Foods and Macys go up and down completely randomly.
Pair Corralation between Whole Foods and Macys
If you would invest 1,874 in Macys Inc on January 26, 2024 and sell it today you would lose (1.00) from holding Macys Inc or give up 0.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Whole Foods Market vs. Macys Inc
Performance |
| Timeline |
| Whole Foods Market |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Macys Inc |
Whole Foods and Macys Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Whole Foods and Macys
The main advantage of trading using opposite Whole Foods and Macys positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Whole Foods 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.| Whole Foods vs. Sun Country Airlines | Whole Foods vs. Highway Holdings Limited | Whole Foods vs. Titan International | Whole Foods vs. Spirit Airlines |
| Macys vs. Marks Spencer Group | Macys vs. Marks and Spencer | Macys vs. Dillards Capital Trust | Macys vs. Companhia Brasileira de |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Global Correlations Find global opportunities by holding instruments from different markets |