Correlation Between Weyco and Clean
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By analyzing existing cross correlation between Weyco Group and Clean Harbors 5125, you can compare the effects of market volatilities on Weyco and Clean 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 Clean. Check out your portfolio center. Please also check ongoing floating volatility patterns of Weyco and Clean.
Diversification Opportunities for Weyco and Clean
Good diversification
The 3 months correlation between Weyco and Clean is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Weyco Group and Clean Harbors 5125 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clean Harbors 5125 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 Clean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clean Harbors 5125 has no effect on the direction of Weyco i.e., Weyco and Clean go up and down completely randomly.
Pair Corralation between Weyco and Clean
Given the investment horizon of 90 days Weyco Group is expected to generate 4.35 times more return on investment than Clean. However, Weyco is 4.35 times more volatile than Clean Harbors 5125. It trades about 0.04 of its potential returns per unit of risk. Clean Harbors 5125 is currently generating about -0.13 per unit of risk. If you would invest 3,240 in Weyco Group on September 12, 2024 and sell it today you would earn a total of 138.00 from holding Weyco Group or generate 4.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 82.81% |
| Values | Daily Returns |
Weyco Group vs. Clean Harbors 5125
Performance |
| Timeline |
| Weyco Group |
| Clean Harbors 5125 |
Weyco and Clean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Weyco and Clean
The main advantage of trading using opposite Weyco and Clean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Weyco position performs unexpectedly, Clean 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 Clean will offset losses from the drop in Clean's long position.The idea behind Weyco Group and Clean Harbors 5125 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.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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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