Correlation Between Weis Markets and Leafly Holdings
Can any of the company-specific risk be diversified away by investing in both Weis Markets and Leafly Holdings 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 Leafly Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Weis Markets and Leafly Holdings, you can compare the effects of market volatilities on Weis Markets and Leafly Holdings 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 Leafly Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Weis Markets and Leafly Holdings.
Diversification Opportunities for Weis Markets and Leafly Holdings
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Weis and Leafly is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Weis Markets and Leafly Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Leafly Holdings 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 Leafly Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Leafly Holdings has no effect on the direction of Weis Markets i.e., Weis Markets and Leafly Holdings go up and down completely randomly.
Pair Corralation between Weis Markets and Leafly Holdings
Considering the 90-day investment horizon Weis Markets is expected to generate 0.18 times more return on investment than Leafly Holdings. However, Weis Markets is 5.71 times less risky than Leafly Holdings. It trades about 0.06 of its potential returns per unit of risk. Leafly Holdings is currently generating about -0.18 per unit of risk. If you would invest 6,395 in Weis Markets on November 1, 2024 and sell it today you would earn a total of 409.00 from holding Weis Markets or generate 6.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 88.33% |
| Values | Daily Returns |
Weis Markets vs. Leafly Holdings
Performance |
| Timeline |
| Weis Markets |
| Leafly Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Weis Markets and Leafly Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Weis Markets and Leafly Holdings
The main advantage of trading using opposite Weis Markets and Leafly Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Weis Markets position performs unexpectedly, Leafly Holdings 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 Leafly Holdings will offset losses from the drop in Leafly Holdings' long position.| Weis Markets vs. Natural Grocers by | Weis Markets vs. Ingles Markets Incorporated | Weis Markets vs. Grocery Outlet Holding | Weis Markets vs. Village Super Market |
| Leafly Holdings vs. Kiaro Holdings Corp | Leafly Holdings vs. Allstar Health Brands | Leafly Holdings vs. China Jo Jo Drugstores |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |