Correlation Between InfuSystems Holdings and Weyco
Can any of the company-specific risk be diversified away by investing in both InfuSystems Holdings 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 InfuSystems Holdings and Weyco into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between InfuSystems Holdings and Weyco Group, you can compare the effects of market volatilities on InfuSystems Holdings 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 InfuSystems Holdings with a short position of Weyco. Check out your portfolio center. Please also check ongoing floating volatility patterns of InfuSystems Holdings and Weyco.
Diversification Opportunities for InfuSystems Holdings and Weyco
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between InfuSystems and Weyco is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding InfuSystems Holdings and Weyco Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Weyco Group and InfuSystems Holdings 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 InfuSystems 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 InfuSystems Holdings i.e., InfuSystems Holdings and Weyco go up and down completely randomly.
Pair Corralation between InfuSystems Holdings and Weyco
Given the investment horizon of 90 days InfuSystems Holdings is expected to generate 9.41 times less return on investment than Weyco. In addition to that, InfuSystems Holdings is 1.44 times more volatile than Weyco Group. It trades about 0.0 of its total potential returns per unit of risk. Weyco Group is currently generating about 0.05 per unit of volatility. If you would invest 2,460 in Weyco Group on November 2, 2024 and sell it today you would earn a total of 1,196 from holding Weyco Group or generate 48.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
InfuSystems Holdings vs. Weyco Group
Performance |
| Timeline |
| InfuSystems Holdings |
| Weyco Group |
InfuSystems Holdings and Weyco Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with InfuSystems Holdings and Weyco
The main advantage of trading using opposite InfuSystems Holdings and Weyco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if InfuSystems Holdings 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.| InfuSystems Holdings vs. Electromed | InfuSystems Holdings vs. Issuer Direct Corp | InfuSystems Holdings vs. IRIDEX | InfuSystems Holdings vs. Milestone Scientific |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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