Correlation Between American Rebel and Weyco
Can any of the company-specific risk be diversified away by investing in both American Rebel and Weyco 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 American Rebel and Weyco into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Rebel Holdings and Weyco Group, you can compare the effects of market volatilities on American Rebel and Weyco 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 American Rebel with a short position of Weyco. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Rebel and Weyco.
Diversification Opportunities for American Rebel and Weyco
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between American and Weyco is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding American Rebel Holdings and Weyco Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Weyco Group and American Rebel 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 American Rebel Holdings are associated (or correlated) with Weyco. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Weyco Group has no effect on the direction of American Rebel i.e., American Rebel and Weyco go up and down completely randomly.
Pair Corralation between American Rebel and Weyco
Given the investment horizon of 90 days American Rebel Holdings is expected to under-perform the Weyco. In addition to that, American Rebel is 1.41 times more volatile than Weyco Group. It trades about -0.08 of its total potential returns per unit of risk. Weyco Group is currently generating about 0.09 per unit of volatility. If you would invest 3,400 in Weyco Group on August 25, 2024 and sell it today you would earn a total of 245.00 from holding Weyco Group or generate 7.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
American Rebel Holdings vs. Weyco Group
Performance |
| Timeline |
| American Rebel Holdings |
| Weyco Group |
American Rebel and Weyco Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Rebel and Weyco
The main advantage of trading using opposite American Rebel and Weyco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Rebel position performs unexpectedly, Weyco 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 Weyco will offset losses from the drop in Weyco's long position.| American Rebel vs. Renewable Energy and | American Rebel vs. Crocs Inc | American Rebel vs. Deckers Outdoor | American Rebel vs. Nike Inc |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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