Correlation Between Weyco and UNITED
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By analyzing existing cross correlation between Weyco Group and UNITED TECHNOLOGIES P, you can compare the effects of market volatilities on Weyco and UNITED 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 UNITED. Check out your portfolio center. Please also check ongoing floating volatility patterns of Weyco and UNITED.
Diversification Opportunities for Weyco and UNITED
Good diversification
The 3 months correlation between Weyco and UNITED is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Weyco Group and UNITED TECHNOLOGIES P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UNITED TECHNOLOGIES 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 UNITED. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UNITED TECHNOLOGIES has no effect on the direction of Weyco i.e., Weyco and UNITED go up and down completely randomly.
Pair Corralation between Weyco and UNITED
Given the investment horizon of 90 days Weyco is expected to generate 93.39 times less return on investment than UNITED. But when comparing it to its historical volatility, Weyco Group is 52.52 times less risky than UNITED. It trades about 0.06 of its potential returns per unit of risk. UNITED TECHNOLOGIES P is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 8,628 in UNITED TECHNOLOGIES P on August 31, 2024 and sell it today you would lose (918.00) from holding UNITED TECHNOLOGIES P or give up 10.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 63.31% |
| Values | Daily Returns |
Weyco Group vs. UNITED TECHNOLOGIES P
Performance |
| Timeline |
| Weyco Group |
| UNITED TECHNOLOGIES |
Weyco and UNITED Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Weyco and UNITED
The main advantage of trading using opposite Weyco and UNITED positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Weyco position performs unexpectedly, UNITED 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 UNITED will offset losses from the drop in UNITED's long position.The idea behind Weyco Group and UNITED TECHNOLOGIES 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.| UNITED vs. Analog Devices | UNITED vs. Weyco Group | UNITED vs. Senmiao Technology | UNITED vs. Uber Technologies |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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