Correlation Between BSANCI and Weyco

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

By analyzing existing cross correlation between BSANCI 3177 26 OCT 31 and Weyco Group, you can compare the effects of market volatilities on BSANCI 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 BSANCI with a short position of Weyco. Check out your portfolio center. Please also check ongoing floating volatility patterns of BSANCI and Weyco.

Diversification Opportunities for BSANCI and Weyco

0.37

Correlation Coefficient

BSANCI  Weyco

Weak diversification

The 3 months correlation between BSANCI and Weyco is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding BSANCI 3177 26 OCT 31 and Weyco Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Weyco Group and BSANCI 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 BSANCI 3177 26 OCT 31 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 BSANCI i.e., BSANCI and Weyco go up and down completely randomly.

Pair Corralation between BSANCI and Weyco

Assuming the 90 days trading horizon BSANCI 3177 26 OCT 31 is expected to under-perform the Weyco. But the bond apears to be less risky and, when comparing its historical volatility, BSANCI 3177 26 OCT 31 is 2.04 times less risky than Weyco. The bond trades about -0.63 of its potential returns per unit of risk. The Weyco Group is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  3,378  in Weyco Group on October 11, 2024 and sell it today you would earn a total of  144.00  from holding Weyco Group or generate 4.26% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	20.0%
Values	Daily Returns

BSANCI 3177 26 OCT 31  vs.  Weyco Group

BSANCI 3177 26

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days BSANCI 3177 26 OCT 31 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Bond's basic indicators remain somewhat strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for BSANCI 3177 26 OCT 31 investors.

Weyco Group

Risk-Adjusted Performance

2 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Weyco Group are ranked lower than 2 (%) 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 BSANCI and Weyco

The main advantage of trading using opposite BSANCI and Weyco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BSANCI 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 BSANCI 3177 26 OCT 31 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.