Correlation Between HNI Corp and Weyco
Can any of the company-specific risk be diversified away by investing in both HNI 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 HNI Corp and Weyco into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HNI Corp and Weyco Group, you can compare the effects of market volatilities on HNI 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 HNI Corp with a short position of Weyco. Check out your portfolio center. Please also check ongoing floating volatility patterns of HNI Corp and Weyco.
Diversification Opportunities for HNI Corp and Weyco
Good diversification
The 3 months correlation between HNI and Weyco is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding HNI Corp and Weyco Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Weyco Group and HNI 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 HNI 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 HNI Corp i.e., HNI Corp and Weyco go up and down completely randomly.
Pair Corralation between HNI Corp and Weyco
Considering the 90-day investment horizon HNI Corp is expected to under-perform the Weyco. But the stock apears to be less risky and, when comparing its historical volatility, HNI Corp is 1.02 times less risky than Weyco. The stock trades about -0.12 of its potential returns per unit of risk. The Weyco Group is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 3,598 in Weyco Group on November 22, 2024 and sell it today you would earn a total of 99.00 from holding Weyco Group or generate 2.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
HNI Corp vs. Weyco Group
Performance |
| Timeline |
| HNI Corp |
| Weyco Group |
HNI Corp and Weyco Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HNI Corp and Weyco
The main advantage of trading using opposite HNI Corp and Weyco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HNI 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.The idea behind HNI Corp and Weyco Group pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |