Correlation Between Weyco and Chijet
Can any of the company-specific risk be diversified away by investing in both Weyco and Chijet 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 Chijet into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Weyco Group and Chijet Motor Company,, you can compare the effects of market volatilities on Weyco and Chijet 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 Chijet. Check out your portfolio center. Please also check ongoing floating volatility patterns of Weyco and Chijet.
Diversification Opportunities for Weyco and Chijet
Weak diversification
The 3 months correlation between Weyco and Chijet is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Weyco Group and Chijet Motor Company, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chijet Motor , 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 Chijet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chijet Motor , has no effect on the direction of Weyco i.e., Weyco and Chijet go up and down completely randomly.
Pair Corralation between Weyco and Chijet
Given the investment horizon of 90 days Weyco Group is expected to under-perform the Chijet. But the stock apears to be less risky and, when comparing its historical volatility, Weyco Group is 2.44 times less risky than Chijet. The stock trades about -0.01 of its potential returns per unit of risk. The Chijet Motor Company, is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 115.00 in Chijet Motor Company, on January 11, 2025 and sell it today you would earn a total of 72.00 from holding Chijet Motor Company, or generate 62.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Weyco Group vs. Chijet Motor Company,
Performance |
| Timeline |
| Weyco Group |
| Chijet Motor , |
Weyco and Chijet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Weyco and Chijet
The main advantage of trading using opposite Weyco and Chijet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Weyco position performs unexpectedly, Chijet 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 Chijet will offset losses from the drop in Chijet's long position.The idea behind Weyco Group and Chijet Motor Company, pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Chijet vs. Estee Lauder Companies | Chijet vs. Nike Inc | Chijet vs. Eastman Kodak Co | Chijet vs. Barrick Gold Corp |
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.
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