Correlation Between Capital Clean and Weyco
Can any of the company-specific risk be diversified away by investing in both Capital Clean 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 Capital Clean and Weyco into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Capital Clean Energy and Weyco Group, you can compare the effects of market volatilities on Capital Clean 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 Capital Clean with a short position of Weyco. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capital Clean and Weyco.
Diversification Opportunities for Capital Clean and Weyco
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Capital and Weyco is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Capital Clean Energy and Weyco Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Weyco Group and Capital Clean 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 Capital Clean Energy 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 Capital Clean i.e., Capital Clean and Weyco go up and down completely randomly.
Pair Corralation between Capital Clean and Weyco
Given the investment horizon of 90 days Capital Clean Energy is expected to generate 0.81 times more return on investment than Weyco. However, Capital Clean Energy is 1.24 times less risky than Weyco. It trades about 0.07 of its potential returns per unit of risk. Weyco Group is currently generating about -0.14 per unit of risk. If you would invest 1,819 in Capital Clean Energy on December 28, 2024 and sell it today you would earn a total of 116.00 from holding Capital Clean Energy or generate 6.38% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Capital Clean Energy vs. Weyco Group
Performance |
Timeline |
Capital Clean Energy |
Weyco Group |
Capital Clean and Weyco Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Capital Clean and Weyco
The main advantage of trading using opposite Capital Clean and Weyco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Capital Clean 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.Capital Clean vs. TIM Participacoes SA | Capital Clean vs. Golden Energy Offshore | Capital Clean vs. KVH Industries | Capital Clean vs. Toro |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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