Correlation Between Weis Markets and CP All
Can any of the company-specific risk be diversified away by investing in both Weis Markets and CP All at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Weis Markets and CP All into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Weis Markets and CP All PCL, you can compare the effects of market volatilities on Weis Markets and CP All 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 Weis Markets with a short position of CP All. Check out your portfolio center. Please also check ongoing floating volatility patterns of Weis Markets and CP All.
Diversification Opportunities for Weis Markets and CP All
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Weis and CPPCY is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Weis Markets and CP All PCL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CP All PCL and Weis Markets 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 Weis Markets are associated (or correlated) with CP All. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CP All PCL has no effect on the direction of Weis Markets i.e., Weis Markets and CP All go up and down completely randomly.
Pair Corralation between Weis Markets and CP All
Considering the 90-day investment horizon Weis Markets is expected to generate 2.09 times less return on investment than CP All. But when comparing it to its historical volatility, Weis Markets is 1.96 times less risky than CP All. It trades about 0.05 of its potential returns per unit of risk. CP All PCL is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,503 in CP All PCL on September 3, 2024 and sell it today you would earn a total of 449.00 from holding CP All PCL or generate 29.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 86.23% |
| Values | Daily Returns |
Weis Markets vs. CP All PCL
Performance |
| Timeline |
| Weis Markets |
| CP All PCL |
Weis Markets and CP All Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Weis Markets and CP All
The main advantage of trading using opposite Weis Markets and CP All positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Weis Markets position performs unexpectedly, CP All 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 CP All will offset losses from the drop in CP All's long position.| Weis Markets vs. Natural Grocers by | Weis Markets vs. Ingles Markets Incorporated | Weis Markets vs. Sendas Distribuidora SA | Weis Markets vs. Grocery Outlet Holding |
| CP All vs. Kesko Oyj ADR | CP All vs. Om Holdings International | CP All vs. Tesco PLC | CP All vs. Carrefour SA |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |