Correlation Between Weyco and Par Pacific

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

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

Diversification Opportunities for Weyco and Par Pacific

-0.2

Correlation Coefficient

Weyco  Par Pacific

Good diversification

The 3 months correlation between Weyco and Par is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Weyco Group and Par Pacific Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Par Pacific Holdings and Weyco 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 Weyco Group are associated (or correlated) with Par Pacific. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Par Pacific Holdings has no effect on the direction of Weyco i.e., Weyco and Par Pacific go up and down completely randomly.

Pair Corralation between Weyco and Par Pacific

Given the investment horizon of 90 days Weyco Group is expected to generate 0.9 times more return on investment than Par Pacific. However, Weyco Group is 1.12 times less risky than Par Pacific. It trades about 0.04 of its potential returns per unit of risk. Par Pacific Holdings is currently generating about -0.03 per unit of risk. If you would invest  2,483  in Weyco Group on October 15, 2024 and sell it today you would earn a total of  964.00  from holding Weyco Group or generate 38.82% return on investment over 90 days.

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

Weyco Group  vs.  Par Pacific Holdings

Weyco Group

Risk-Adjusted Performance

2 of 100

Weak

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.

Par Pacific Holdings

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Par Pacific Holdings are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable basic indicators, Par Pacific is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Weyco and Par Pacific

The main advantage of trading using opposite Weyco and Par Pacific positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Weyco position performs unexpectedly, Par Pacific 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 Par Pacific will offset losses from the drop in Par Pacific's long position.

The idea behind Weyco Group and Par Pacific Holdings 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.