Correlation Between NH Foods and Weyco
Can any of the company-specific risk be diversified away by investing in both NH Foods 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 NH Foods and Weyco into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NH Foods Ltd and Weyco Group, you can compare the effects of market volatilities on NH Foods 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 NH Foods with a short position of Weyco. Check out your portfolio center. Please also check ongoing floating volatility patterns of NH Foods and Weyco.
Diversification Opportunities for NH Foods and Weyco
Pay attention - limited upside
The 3 months correlation between NIPMY and Weyco is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding NH Foods Ltd and Weyco Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Weyco Group and NH Foods 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 NH Foods Ltd 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 NH Foods i.e., NH Foods and Weyco go up and down completely randomly.
Pair Corralation between NH Foods and Weyco
If you would invest 3,382 in Weyco Group on August 31, 2024 and sell it today you would earn a total of 181.00 from holding Weyco Group or generate 5.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NH Foods Ltd vs. Weyco Group
Performance |
| Timeline |
| NH Foods |
| Weyco Group |
NH Foods and Weyco Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NH Foods and Weyco
The main advantage of trading using opposite NH Foods and Weyco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NH Foods 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.| NH Foods vs. The A2 Milk | NH Foods vs. Altavoz Entertainment | NH Foods vs. Artisan Consumer Goods | NH Foods vs. General Mills |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |