Correlation Between Weyco and Calumet
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By analyzing existing cross correlation between Weyco Group and Calumet Specialty Products, you can compare the effects of market volatilities on Weyco and Calumet 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 Calumet. Check out your portfolio center. Please also check ongoing floating volatility patterns of Weyco and Calumet.
Diversification Opportunities for Weyco and Calumet
Weak diversification
The 3 months correlation between Weyco and Calumet is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Weyco Group and Calumet Specialty Products in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calumet Specialty 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 Calumet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calumet Specialty has no effect on the direction of Weyco i.e., Weyco and Calumet go up and down completely randomly.
Pair Corralation between Weyco and Calumet
Given the investment horizon of 90 days Weyco is expected to generate 2.15 times less return on investment than Calumet. In addition to that, Weyco is 3.54 times more volatile than Calumet Specialty Products. It trades about 0.08 of its total potential returns per unit of risk. Calumet Specialty Products is currently generating about 0.63 per unit of volatility. If you would invest 10,056 in Calumet Specialty Products on September 3, 2024 and sell it today you would earn a total of 271.00 from holding Calumet Specialty Products or generate 2.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 15.0% |
| Values | Daily Returns |
Weyco Group vs. Calumet Specialty Products
Performance |
| Timeline |
| Weyco Group |
| Calumet Specialty |
Weyco and Calumet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Weyco and Calumet
The main advantage of trading using opposite Weyco and Calumet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Weyco position performs unexpectedly, Calumet 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 Calumet will offset losses from the drop in Calumet's long position.The idea behind Weyco Group and Calumet Specialty Products 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.| Calumet vs. ChampionX | Calumet vs. Highway Holdings Limited | Calumet vs. Primoris Services | Calumet vs. Weibo 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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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