Correlation Between JV SPAC and Weyco
Can any of the company-specific risk be diversified away by investing in both JV SPAC 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 JV SPAC and Weyco into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JV SPAC Acquisition and Weyco Group, you can compare the effects of market volatilities on JV SPAC 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 JV SPAC with a short position of Weyco. Check out your portfolio center. Please also check ongoing floating volatility patterns of JV SPAC and Weyco.
Diversification Opportunities for JV SPAC and Weyco
Very weak diversification
The 3 months correlation between JVSA and Weyco is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding JV SPAC Acquisition and Weyco Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Weyco Group and JV SPAC 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 JV SPAC Acquisition 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 JV SPAC i.e., JV SPAC and Weyco go up and down completely randomly.
Pair Corralation between JV SPAC and Weyco
Given the investment horizon of 90 days JV SPAC is expected to generate 30.2 times less return on investment than Weyco. But when comparing it to its historical volatility, JV SPAC Acquisition is 138.64 times less risky than Weyco. It trades about 0.41 of its potential returns per unit of risk. Weyco Group is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 3,359 in Weyco Group on September 4, 2024 and sell it today you would earn a total of 240.00 from holding Weyco Group or generate 7.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
JV SPAC Acquisition vs. Weyco Group
Performance |
| Timeline |
| JV SPAC Acquisition |
| Weyco Group |
JV SPAC and Weyco Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JV SPAC and Weyco
The main advantage of trading using opposite JV SPAC and Weyco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JV SPAC 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.| JV SPAC vs. Voyager Acquisition Corp | JV SPAC vs. YHN Acquisition I | JV SPAC vs. CO2 Energy Transition | JV SPAC vs. Vine Hill Capital |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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