Correlation Between Weyco and STORE
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By analyzing existing cross correlation between Weyco Group and STORE CAP P, you can compare the effects of market volatilities on Weyco and STORE 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 STORE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Weyco and STORE.
Diversification Opportunities for Weyco and STORE
Good diversification
The 3 months correlation between Weyco and STORE is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Weyco Group and STORE CAP P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STORE CAP P 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 STORE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STORE CAP P has no effect on the direction of Weyco i.e., Weyco and STORE go up and down completely randomly.
Pair Corralation between Weyco and STORE
Given the investment horizon of 90 days Weyco Group is expected to generate 1.91 times more return on investment than STORE. However, Weyco is 1.91 times more volatile than STORE CAP P. It trades about 0.05 of its potential returns per unit of risk. STORE CAP P is currently generating about -0.01 per unit of risk. If you would invest 2,279 in Weyco Group on September 12, 2024 and sell it today you would earn a total of 1,099 from holding Weyco Group or generate 48.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 79.6% |
| Values | Daily Returns |
Weyco Group vs. STORE CAP P
Performance |
| Timeline |
| Weyco Group |
| STORE CAP P |
Weyco and STORE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Weyco and STORE
The main advantage of trading using opposite Weyco and STORE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Weyco position performs unexpectedly, STORE 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 STORE will offset losses from the drop in STORE's long position.The idea behind Weyco Group and STORE CAP P 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.| STORE vs. Edgewell Personal Care | STORE vs. KNOT Offshore Partners | STORE vs. Vera Bradley | STORE 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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