Correlation Between Koninklijke Ahold and Weis Markets
Can any of the company-specific risk be diversified away by investing in both Koninklijke Ahold and Weis Markets 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 Koninklijke Ahold and Weis Markets into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Koninklijke Ahold Delhaize and Weis Markets, you can compare the effects of market volatilities on Koninklijke Ahold and Weis Markets 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 Koninklijke Ahold with a short position of Weis Markets. Check out your portfolio center. Please also check ongoing floating volatility patterns of Koninklijke Ahold and Weis Markets.
Diversification Opportunities for Koninklijke Ahold and Weis Markets
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Koninklijke and Weis is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Koninklijke Ahold Delhaize and Weis Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Weis Markets and Koninklijke Ahold 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 Koninklijke Ahold Delhaize are associated (or correlated) with Weis Markets. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Weis Markets has no effect on the direction of Koninklijke Ahold i.e., Koninklijke Ahold and Weis Markets go up and down completely randomly.
Pair Corralation between Koninklijke Ahold and Weis Markets
If you would invest 6,403 in Weis Markets on August 28, 2024 and sell it today you would earn a total of 974.00 from holding Weis Markets or generate 15.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Koninklijke Ahold Delhaize vs. Weis Markets
Performance |
| Timeline |
| Koninklijke Ahold |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Weis Markets |
Koninklijke Ahold and Weis Markets Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Koninklijke Ahold and Weis Markets
The main advantage of trading using opposite Koninklijke Ahold and Weis Markets positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Koninklijke Ahold position performs unexpectedly, Weis Markets 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 Weis Markets will offset losses from the drop in Weis Markets' long position.| Koninklijke Ahold vs. Sendas Distribuidora SA | Koninklijke Ahold vs. Dingdong ADR | Koninklijke Ahold vs. Albertsons Companies | Koninklijke Ahold vs. Village Super Market |
| Weis Markets vs. Innovative Food Hldg | Weis Markets vs. Calavo Growers | Weis Markets vs. The Chefs Warehouse | Weis Markets vs. AMCON Distributing |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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