Correlation Between Weyco and APPLE
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By analyzing existing cross correlation between Weyco Group and APPLE INC 245, you can compare the effects of market volatilities on Weyco and APPLE 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 APPLE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Weyco and APPLE.
Diversification Opportunities for Weyco and APPLE
Very good diversification
The 3 months correlation between Weyco and APPLE is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Weyco Group and APPLE INC 245 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on APPLE INC 245 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 APPLE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of APPLE INC 245 has no effect on the direction of Weyco i.e., Weyco and APPLE go up and down completely randomly.
Pair Corralation between Weyco and APPLE
Given the investment horizon of 90 days Weyco Group is expected to generate 10.36 times more return on investment than APPLE. However, Weyco is 10.36 times more volatile than APPLE INC 245. It trades about 0.07 of its potential returns per unit of risk. APPLE INC 245 is currently generating about -0.21 per unit of risk. 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 | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Weyco Group vs. APPLE INC 245
Performance |
| Timeline |
| Weyco Group |
| APPLE INC 245 |
Weyco and APPLE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Weyco and APPLE
The main advantage of trading using opposite Weyco and APPLE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Weyco position performs unexpectedly, APPLE 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 APPLE will offset losses from the drop in APPLE's long position.The idea behind Weyco Group and APPLE INC 245 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.| APPLE vs. Barrick Gold Corp | APPLE vs. Sun Country Airlines | APPLE vs. Apogee Enterprises | APPLE vs. TFI International |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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