Correlation Between Weyco and 26442CAR5
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By analyzing existing cross correlation between Weyco Group and DUKE ENERGY CAROLINAS, you can compare the effects of market volatilities on Weyco and 26442CAR5 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 26442CAR5. Check out your portfolio center. Please also check ongoing floating volatility patterns of Weyco and 26442CAR5.
Diversification Opportunities for Weyco and 26442CAR5
Good diversification
The 3 months correlation between Weyco and 26442CAR5 is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Weyco Group and DUKE ENERGY CAROLINAS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DUKE ENERGY CAROLINAS 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 26442CAR5. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DUKE ENERGY CAROLINAS has no effect on the direction of Weyco i.e., Weyco and 26442CAR5 go up and down completely randomly.
Pair Corralation between Weyco and 26442CAR5
Given the investment horizon of 90 days Weyco Group is expected to generate 2.25 times more return on investment than 26442CAR5. However, Weyco is 2.25 times more volatile than DUKE ENERGY CAROLINAS. It trades about 0.05 of its potential returns per unit of risk. DUKE ENERGY CAROLINAS is currently generating about 0.0 per unit of risk. If you would invest 2,884 in Weyco Group on September 2, 2024 and sell it today you would earn a total of 687.00 from holding Weyco Group or generate 23.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 60.48% |
| Values | Daily Returns |
Weyco Group vs. DUKE ENERGY CAROLINAS
Performance |
| Timeline |
| Weyco Group |
| DUKE ENERGY CAROLINAS |
Weyco and 26442CAR5 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Weyco and 26442CAR5
The main advantage of trading using opposite Weyco and 26442CAR5 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Weyco position performs unexpectedly, 26442CAR5 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 26442CAR5 will offset losses from the drop in 26442CAR5's long position.The idea behind Weyco Group and DUKE ENERGY CAROLINAS 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.| 26442CAR5 vs. AEP TEX INC | 26442CAR5 vs. US BANK NATIONAL | 26442CAR5 vs. International Business Machines | 26442CAR5 vs. Intel |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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