Correlation Between Weyco and Kerry Logistics
Can any of the company-specific risk be diversified away by investing in both Weyco and Kerry Logistics 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 Kerry Logistics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Weyco Group and Kerry Logistics Network, you can compare the effects of market volatilities on Weyco and Kerry Logistics 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 Kerry Logistics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Weyco and Kerry Logistics.
Diversification Opportunities for Weyco and Kerry Logistics
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Weyco and Kerry is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Weyco Group and Kerry Logistics Network in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kerry Logistics Network 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 Kerry Logistics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kerry Logistics Network has no effect on the direction of Weyco i.e., Weyco and Kerry Logistics go up and down completely randomly.
Pair Corralation between Weyco and Kerry Logistics
Given the investment horizon of 90 days Weyco Group is expected to generate 0.48 times more return on investment than Kerry Logistics. However, Weyco Group is 2.07 times less risky than Kerry Logistics. It trades about 0.06 of its potential returns per unit of risk. Kerry Logistics Network is currently generating about -0.03 per unit of risk. If you would invest 2,416 in Weyco Group on September 12, 2024 and sell it today you would earn a total of 962.00 from holding Weyco Group or generate 39.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 47.13% |
| Values | Daily Returns |
Weyco Group vs. Kerry Logistics Network
Performance |
| Timeline |
| Weyco Group |
| Kerry Logistics Network |
Weyco and Kerry Logistics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Weyco and Kerry Logistics
The main advantage of trading using opposite Weyco and Kerry Logistics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Weyco position performs unexpectedly, Kerry Logistics 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 Kerry Logistics will offset losses from the drop in Kerry Logistics' long position.The idea behind Weyco Group and Kerry Logistics Network 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.| Kerry Logistics vs. Centessa Pharmaceuticals PLC | Kerry Logistics vs. Coty Inc | Kerry Logistics vs. Inter Parfums | Kerry Logistics vs. Weyco Group |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Global Correlations Find global opportunities by holding instruments from different markets |