Correlation Between Weyco and ALTICE

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

By analyzing existing cross correlation between Weyco Group and ALTICE FRANCE S, you can compare the effects of market volatilities on Weyco and ALTICE 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 ALTICE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Weyco and ALTICE.

Diversification Opportunities for Weyco and ALTICE

-0.41

Correlation Coefficient

Weyco  ALTICE

Very good diversification

The 3 months correlation between Weyco and ALTICE is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Weyco Group and ALTICE FRANCE S in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ALTICE FRANCE S 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 ALTICE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ALTICE FRANCE S has no effect on the direction of Weyco i.e., Weyco and ALTICE go up and down completely randomly.

Pair Corralation between Weyco and ALTICE

Given the investment horizon of 90 days Weyco Group is expected to generate 0.62 times more return on investment than ALTICE. However, Weyco Group is 1.6 times less risky than ALTICE. It trades about -0.23 of its potential returns per unit of risk. ALTICE FRANCE S is currently generating about -0.15 per unit of risk. If you would invest  3,696  in Weyco Group on December 24, 2024 and sell it today you would lose (808.00) from holding Weyco Group or give up 21.86% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	44.26%
Values	Daily Returns

Weyco Group  vs.  ALTICE FRANCE S

Weyco Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days Weyco Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

ALTICE FRANCE S

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Weyco and ALTICE

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

The idea behind Weyco Group and ALTICE FRANCE S 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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.