Correlation Between Hometown International and Weis Markets
Can any of the company-specific risk be diversified away by investing in both Hometown International 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 Hometown International and Weis Markets into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hometown International and Weis Markets, you can compare the effects of market volatilities on Hometown International 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 Hometown International with a short position of Weis Markets. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hometown International and Weis Markets.
Diversification Opportunities for Hometown International and Weis Markets
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Hometown and Weis is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Hometown International and Weis Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Weis Markets and Hometown International 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 Hometown International 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 Hometown International i.e., Hometown International and Weis Markets go up and down completely randomly.
Pair Corralation between Hometown International and Weis Markets
Given the investment horizon of 90 days Hometown International is expected to generate 0.09 times more return on investment than Weis Markets. However, Hometown International is 10.67 times less risky than Weis Markets. It trades about 0.04 of its potential returns per unit of risk. Weis Markets is currently generating about -0.01 per unit of risk. If you would invest 170.00 in Hometown International on November 9, 2024 and sell it today you would earn a total of 5.00 from holding Hometown International or generate 2.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.2% |
| Values | Daily Returns |
Hometown International vs. Weis Markets
Performance |
| Timeline |
| Hometown International |
| Weis Markets |
Hometown International and Weis Markets Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hometown International and Weis Markets
The main advantage of trading using opposite Hometown International and Weis Markets positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hometown International 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.| Hometown International vs. Weis Markets | Hometown International vs. Natural Grocers by | Hometown International vs. Ingles Markets Incorporated | Hometown International vs. Grocery Outlet Holding |
| Weis Markets vs. Natural Grocers by | Weis Markets vs. Ingles Markets Incorporated | Weis Markets vs. Grocery Outlet Holding | Weis Markets vs. Village Super Market |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |