Correlation Between DigiAsia Corp and Weyco
Can any of the company-specific risk be diversified away by investing in both DigiAsia Corp 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 DigiAsia Corp and Weyco into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DigiAsia Corp and Weyco Group, you can compare the effects of market volatilities on DigiAsia Corp 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 DigiAsia Corp with a short position of Weyco. Check out your portfolio center. Please also check ongoing floating volatility patterns of DigiAsia Corp and Weyco.
Diversification Opportunities for DigiAsia Corp and Weyco
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between DigiAsia and Weyco is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding DigiAsia Corp and Weyco Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Weyco Group and DigiAsia Corp 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 DigiAsia Corp 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 DigiAsia Corp i.e., DigiAsia Corp and Weyco go up and down completely randomly.
Pair Corralation between DigiAsia Corp and Weyco
Given the investment horizon of 90 days DigiAsia Corp is expected to under-perform the Weyco. In addition to that, DigiAsia Corp is 6.67 times more volatile than Weyco Group. It trades about -0.28 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 3,674 in Weyco Group on November 3, 2024 and sell it today you would lose (100.00) from holding Weyco Group or give up 2.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DigiAsia Corp vs. Weyco Group
Performance |
| Timeline |
| DigiAsia Corp |
| Weyco Group |
DigiAsia Corp and Weyco Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DigiAsia Corp and Weyco
The main advantage of trading using opposite DigiAsia Corp and Weyco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DigiAsia Corp 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.| DigiAsia Corp vs. Udemy Inc | DigiAsia Corp vs. Cheche Group Class | DigiAsia Corp vs. Arrow Electronics | DigiAsia Corp vs. GMO Internet |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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