Correlation Between Weyco and Chefs Warehouse
Can any of the company-specific risk be diversified away by investing in both Weyco and Chefs Warehouse 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 Weyco and Chefs Warehouse into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Weyco Group and The Chefs Warehouse, you can compare the effects of market volatilities on Weyco and Chefs Warehouse 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 Weyco with a short position of Chefs Warehouse. Check out your portfolio center. Please also check ongoing floating volatility patterns of Weyco and Chefs Warehouse.
Diversification Opportunities for Weyco and Chefs Warehouse
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Weyco and Chefs is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Weyco Group and The Chefs Warehouse in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chefs Warehouse and Weyco 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 Weyco Group are associated (or correlated) with Chefs Warehouse. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chefs Warehouse has no effect on the direction of Weyco i.e., Weyco and Chefs Warehouse go up and down completely randomly.
Pair Corralation between Weyco and Chefs Warehouse
Given the investment horizon of 90 days Weyco is expected to generate 2.6 times less return on investment than Chefs Warehouse. In addition to that, Weyco is 2.35 times more volatile than The Chefs Warehouse. It trades about 0.06 of its total potential returns per unit of risk. The Chefs Warehouse is currently generating about 0.38 per unit of volatility. If you would invest 3,999 in The Chefs Warehouse on September 5, 2024 and sell it today you would earn a total of 715.00 from holding The Chefs Warehouse or generate 17.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Weyco Group vs. The Chefs Warehouse
Performance |
| Timeline |
| Weyco Group |
| Chefs Warehouse |
Weyco and Chefs Warehouse Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Weyco and Chefs Warehouse
The main advantage of trading using opposite Weyco and Chefs Warehouse positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Weyco position performs unexpectedly, Chefs Warehouse 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 Chefs Warehouse will offset losses from the drop in Chefs Warehouse's long position.| Weyco vs. The Chefs Warehouse | Weyco vs. G Willi Food International | Weyco vs. SpartanNash Co | Weyco vs. Calavo Growers |
| Chefs Warehouse vs. US Foods Holding | Chefs Warehouse vs. Sysco | Chefs Warehouse vs. SpartanNash Co | Chefs Warehouse vs. Calavo Growers |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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