Correlation Between PHINIA and Weyco

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

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

Diversification Opportunities for PHINIA and Weyco

0.48

Correlation Coefficient

PHINIA  Weyco

Very weak diversification

The 3 months correlation between PHINIA and Weyco is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding PHINIA Inc and Weyco Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Weyco Group and PHINIA 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 PHINIA Inc 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 PHINIA i.e., PHINIA and Weyco go up and down completely randomly.

Pair Corralation between PHINIA and Weyco

Given the investment horizon of 90 days PHINIA Inc is expected to generate 0.92 times more return on investment than Weyco. However, PHINIA Inc is 1.08 times less risky than Weyco. It trades about 0.11 of its potential returns per unit of risk. Weyco Group is currently generating about 0.04 per unit of risk. If you would invest  2,814  in PHINIA Inc on October 9, 2024 and sell it today you would earn a total of  1,900  from holding PHINIA Inc or generate 67.52% return on investment over 90 days.

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

PHINIA Inc  vs.  Weyco Group

PHINIA Inc

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in PHINIA Inc are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of very inconsistent forward indicators, PHINIA may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Weyco Group

Risk-Adjusted Performance

4 of 100

Insignificant

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

Pair Trading with PHINIA and Weyco

The main advantage of trading using opposite PHINIA and Weyco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PHINIA 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 PHINIA Inc 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.