Correlation Between Aimfinity Investment and Weyco

Can any of the company-specific risk be diversified away by investing in both Aimfinity Investment and Weyco 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 Aimfinity Investment and Weyco into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Aimfinity Investment I and Weyco Group, you can compare the effects of market volatilities on Aimfinity Investment and Weyco 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 Aimfinity Investment with a short position of Weyco. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aimfinity Investment and Weyco.

Diversification Opportunities for Aimfinity Investment and Weyco

-0.14

Correlation Coefficient

Aimfinity Investment  Weyco

Good diversification

The 3 months correlation between Aimfinity and Weyco is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Aimfinity Investment I and Weyco Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Weyco Group and Aimfinity Investment 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 Aimfinity Investment I are associated (or correlated) with Weyco. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Weyco Group has no effect on the direction of Aimfinity Investment i.e., Aimfinity Investment and Weyco go up and down completely randomly.

Pair Corralation between Aimfinity Investment and Weyco

Assuming the 90 days horizon Aimfinity Investment I is expected to generate 1.73 times more return on investment than Weyco. However, Aimfinity Investment is 1.73 times more volatile than Weyco Group. It trades about 0.05 of its potential returns per unit of risk. Weyco Group is currently generating about -0.14 per unit of risk. If you would invest  1,210  in Aimfinity Investment I on December 29, 2024 and sell it today you would earn a total of  98.00  from holding Aimfinity Investment I or generate 8.1% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Aimfinity Investment I  vs.  Weyco Group

Aimfinity Investment

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Aimfinity Investment I are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, Aimfinity Investment may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Weyco Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days Weyco Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Aimfinity Investment and Weyco

The main advantage of trading using opposite Aimfinity Investment and Weyco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aimfinity Investment position performs unexpectedly, Weyco 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 Weyco will offset losses from the drop in Weyco's long position.

The idea behind Aimfinity Investment I and Weyco Group 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.

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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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.