Correlation Between 532457BU1 and Weyco

Can any of the company-specific risk be diversified away by investing in both 532457BU1 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 532457BU1 and Weyco into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between ELI LILLY AND and Weyco Group, you can compare the effects of market volatilities on 532457BU1 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 532457BU1 with a short position of Weyco. Check out your portfolio center. Please also check ongoing floating volatility patterns of 532457BU1 and Weyco.

Diversification Opportunities for 532457BU1 and Weyco

-0.52

Correlation Coefficient

532457BU1  Weyco

Excellent diversification

The 3 months correlation between 532457BU1 and Weyco is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding ELI LILLY AND and Weyco Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Weyco Group and 532457BU1 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 ELI LILLY AND 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 532457BU1 i.e., 532457BU1 and Weyco go up and down completely randomly.

Pair Corralation between 532457BU1 and Weyco

Assuming the 90 days trading horizon ELI LILLY AND is expected to under-perform the Weyco. But the bond apears to be less risky and, when comparing its historical volatility, ELI LILLY AND is 1.35 times less risky than Weyco. The bond trades about -0.03 of its potential returns per unit of risk. The Weyco Group is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  3,731  in Weyco Group on September 24, 2024 and sell it today you would earn a total of  72.00  from holding Weyco Group or generate 1.93% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	76.19%
Values	Daily Returns

ELI LILLY AND  vs.  Weyco Group

ELI LILLY AND

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ELI LILLY AND has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest uncertain performance, the Bond's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for ELI LILLY AND investors.

Weyco Group

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Weyco Group are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unfluctuating basic indicators, Weyco unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with 532457BU1 and Weyco

The main advantage of trading using opposite 532457BU1 and Weyco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 532457BU1 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 ELI LILLY AND 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.

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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.