Correlation Between Weis Markets and Kesko Oyj
Can any of the company-specific risk be diversified away by investing in both Weis Markets and Kesko Oyj 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 Kesko Oyj into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Weis Markets and Kesko Oyj ADR, you can compare the effects of market volatilities on Weis Markets and Kesko Oyj 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 Kesko Oyj. Check out your portfolio center. Please also check ongoing floating volatility patterns of Weis Markets and Kesko Oyj.
Diversification Opportunities for Weis Markets and Kesko Oyj
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Weis and Kesko is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Weis Markets and Kesko Oyj ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kesko Oyj ADR 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 Kesko Oyj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kesko Oyj ADR has no effect on the direction of Weis Markets i.e., Weis Markets and Kesko Oyj go up and down completely randomly.
Pair Corralation between Weis Markets and Kesko Oyj
Considering the 90-day investment horizon Weis Markets is expected to generate 1.06 times more return on investment than Kesko Oyj. However, Weis Markets is 1.06 times more volatile than Kesko Oyj ADR. It trades about 0.27 of its potential returns per unit of risk. Kesko Oyj ADR is currently generating about 0.09 per unit of risk. If you would invest 6,403 in Weis Markets on August 27, 2024 and sell it today you would earn a total of 974.00 from holding Weis Markets or generate 15.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Weis Markets vs. Kesko Oyj ADR
Performance |
| Timeline |
| Weis Markets |
| Kesko Oyj ADR |
Weis Markets and Kesko Oyj Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Weis Markets and Kesko Oyj
The main advantage of trading using opposite Weis Markets and Kesko Oyj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Weis Markets position performs unexpectedly, Kesko Oyj 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 Kesko Oyj will offset losses from the drop in Kesko Oyj's long position.| Weis Markets vs. Innovative Food Hldg | Weis Markets vs. Calavo Growers | Weis Markets vs. The Chefs Warehouse | Weis Markets vs. AMCON Distributing |
| Kesko Oyj vs. Natural Grocers by | Kesko Oyj vs. Grocery Outlet Holding | Kesko Oyj vs. Village Super Market | Kesko Oyj vs. Ingles Markets Incorporated |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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