Correlation Between INGERSOLL and Weyco

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Can any of the company-specific risk be diversified away by investing in both INGERSOLL 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 INGERSOLL and Weyco into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between INGERSOLL RAND LUXEMBOURG FINANCE and Weyco Group, you can compare the effects of market volatilities on INGERSOLL 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 INGERSOLL with a short position of Weyco. Check out your portfolio center. Please also check ongoing floating volatility patterns of INGERSOLL and Weyco.

Diversification Opportunities for INGERSOLL and Weyco

INGERSOLLWeycoDiversified AwayINGERSOLLWeycoDiversified Away100%
-0.33
  Correlation Coefficient

Very good diversification

The 3 months correlation between INGERSOLL and Weyco is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding INGERSOLL RAND LUXEMBOURG FINA and Weyco Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Weyco Group and INGERSOLL 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 INGERSOLL RAND LUXEMBOURG FINANCE 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 INGERSOLL i.e., INGERSOLL and Weyco go up and down completely randomly.

Pair Corralation between INGERSOLL and Weyco

Assuming the 90 days trading horizon INGERSOLL RAND LUXEMBOURG FINANCE is expected to under-perform the Weyco. But the bond apears to be less risky and, when comparing its historical volatility, INGERSOLL RAND LUXEMBOURG FINANCE is 10.01 times less risky than Weyco. The bond trades about -0.19 of its potential returns per unit of risk. The Weyco Group is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  3,381  in Weyco Group on September 30, 2024 and sell it today you would earn a total of  341.00  from holding Weyco Group or generate 10.09% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy98.44%
ValuesDaily Returns

INGERSOLL RAND LUXEMBOURG FINA  vs.  Weyco Group

 Performance 
JavaScript chart by amCharts 3.21.15OctNovDec -505101520
JavaScript chart by amCharts 3.21.15456873AD0 WEYS
       Timeline  
INGERSOLL RAND LUXEM 

Risk-Adjusted Performance

0 of 100

 
Weak
 
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Very Weak
Over the last 90 days INGERSOLL RAND LUXEMBOURG FINANCE has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, INGERSOLL is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
JavaScript chart by amCharts 3.21.15212440243024402491929394959697
Weyco Group 

Risk-Adjusted Performance

4 of 100

 
Weak
 
Strong
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 January 2025.
JavaScript chart by amCharts 3.21.15NovDecDec323334353637383940

INGERSOLL and Weyco Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-1.6-1.2-0.8-0.4-0.040.260.661.061.461.86 0.050.100.150.200.250.300.350.40
JavaScript chart by amCharts 3.21.15456873AD0 WEYS
       Returns  

Pair Trading with INGERSOLL and Weyco

The main advantage of trading using opposite INGERSOLL and Weyco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INGERSOLL 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 INGERSOLL RAND LUXEMBOURG FINANCE 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.

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