Correlation Between Utah Medical and Weyco
Can any of the company-specific risk be diversified away by investing in both Utah Medical 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 Utah Medical and Weyco into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Utah Medical Products and Weyco Group, you can compare the effects of market volatilities on Utah Medical 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 Utah Medical with a short position of Weyco. Check out your portfolio center. Please also check ongoing floating volatility patterns of Utah Medical and Weyco.
Diversification Opportunities for Utah Medical and Weyco
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Utah and Weyco is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Utah Medical Products and Weyco Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Weyco Group and Utah Medical 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 Utah Medical Products 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 Utah Medical i.e., Utah Medical and Weyco go up and down completely randomly.
Pair Corralation between Utah Medical and Weyco
Given the investment horizon of 90 days Utah Medical Products is expected to under-perform the Weyco. But the stock apears to be less risky and, when comparing its historical volatility, Utah Medical Products is 1.43 times less risky than Weyco. The stock trades about -0.07 of its potential returns per unit of risk. The Weyco Group is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 3,528 in Weyco Group on November 18, 2024 and sell it today you would earn a total of 100.00 from holding Weyco Group or generate 2.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Utah Medical Products vs. Weyco Group
Performance |
| Timeline |
| Utah Medical Products |
| Weyco Group |
Utah Medical and Weyco Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Utah Medical and Weyco
The main advantage of trading using opposite Utah Medical and Weyco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Utah Medical 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.| Utah Medical vs. Precision Optics, | Utah Medical vs. Repro Med Systems | Utah Medical vs. InfuSystems Holdings | Utah Medical 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |