Correlation Between 4Imprint Group and Weiss Korea
Can any of the company-specific risk be diversified away by investing in both 4Imprint Group and Weiss Korea 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 4Imprint Group and Weiss Korea into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 4Imprint Group Plc and Weiss Korea Opportunity, you can compare the effects of market volatilities on 4Imprint Group and Weiss Korea 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 4Imprint Group with a short position of Weiss Korea. Check out your portfolio center. Please also check ongoing floating volatility patterns of 4Imprint Group and Weiss Korea.
Diversification Opportunities for 4Imprint Group and Weiss Korea
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between 4Imprint and Weiss is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding 4Imprint Group Plc and Weiss Korea Opportunity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Weiss Korea Opportunity and 4Imprint Group 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 4Imprint Group Plc are associated (or correlated) with Weiss Korea. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Weiss Korea Opportunity has no effect on the direction of 4Imprint Group i.e., 4Imprint Group and Weiss Korea go up and down completely randomly.
Pair Corralation between 4Imprint Group and Weiss Korea
Assuming the 90 days trading horizon 4Imprint Group Plc is expected to generate 0.84 times more return on investment than Weiss Korea. However, 4Imprint Group Plc is 1.19 times less risky than Weiss Korea. It trades about 0.32 of its potential returns per unit of risk. Weiss Korea Opportunity is currently generating about 0.23 per unit of risk. If you would invest 488,000 in 4Imprint Group Plc on November 3, 2024 and sell it today you would earn a total of 115,000 from holding 4Imprint Group Plc or generate 23.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
4Imprint Group Plc vs. Weiss Korea Opportunity
Performance |
| Timeline |
| 4Imprint Group Plc |
| Weiss Korea Opportunity |
4Imprint Group and Weiss Korea Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 4Imprint Group and Weiss Korea
The main advantage of trading using opposite 4Imprint Group and Weiss Korea positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 4Imprint Group position performs unexpectedly, Weiss Korea 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 Weiss Korea will offset losses from the drop in Weiss Korea's long position.| 4Imprint Group vs. Qurate Retail Series | 4Imprint Group vs. Power Metal Resources | 4Imprint Group vs. Gaming Realms plc | 4Imprint Group vs. Sovereign Metals |
| Weiss Korea vs. AcadeMedia AB | Weiss Korea vs. MediaZest plc | Weiss Korea vs. Ubisoft Entertainment | Weiss Korea vs. Alliance Data Systems |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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