Correlation Between Kuka AG and Weyco
Can any of the company-specific risk be diversified away by investing in both Kuka AG 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 Kuka AG and Weyco into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kuka AG ADR and Weyco Group, you can compare the effects of market volatilities on Kuka AG 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 Kuka AG with a short position of Weyco. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kuka AG and Weyco.
Diversification Opportunities for Kuka AG and Weyco
Pay attention - limited upside
The 3 months correlation between Kuka and Weyco is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Kuka AG ADR and Weyco Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Weyco Group and Kuka AG 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 Kuka AG ADR 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 Kuka AG i.e., Kuka AG and Weyco go up and down completely randomly.
Pair Corralation between Kuka AG and Weyco
If you would invest 2,630 in Weyco Group on September 12, 2024 and sell it today you would earn a total of 748.00 from holding Weyco Group or generate 28.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.28% |
| Values | Daily Returns |
Kuka AG ADR vs. Weyco Group
Performance |
| Timeline |
| Kuka AG ADR |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Weyco Group |
Kuka AG and Weyco Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kuka AG and Weyco
The main advantage of trading using opposite Kuka AG and Weyco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kuka AG 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.| Kuka AG vs. Luxfer Holdings PLC | Kuka AG vs. Bright Scholar Education | Kuka AG vs. Ihuman Inc | Kuka AG vs. Stepan Company |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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