Correlation Between Weis Markets and Krispy Kreme
Can any of the company-specific risk be diversified away by investing in both Weis Markets and Krispy Kreme 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 Weis Markets and Krispy Kreme into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Weis Markets and Krispy Kreme, you can compare the effects of market volatilities on Weis Markets and Krispy Kreme 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 Weis Markets with a short position of Krispy Kreme. Check out your portfolio center. Please also check ongoing floating volatility patterns of Weis Markets and Krispy Kreme.
Diversification Opportunities for Weis Markets and Krispy Kreme
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Weis and Krispy is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding Weis Markets and Krispy Kreme in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Krispy Kreme and Weis Markets 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 Weis Markets are associated (or correlated) with Krispy Kreme. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Krispy Kreme has no effect on the direction of Weis Markets i.e., Weis Markets and Krispy Kreme go up and down completely randomly.
Pair Corralation between Weis Markets and Krispy Kreme
Considering the 90-day investment horizon Weis Markets is expected to generate 0.4 times more return on investment than Krispy Kreme. However, Weis Markets is 2.47 times less risky than Krispy Kreme. It trades about 0.14 of its potential returns per unit of risk. Krispy Kreme is currently generating about -0.19 per unit of risk. If you would invest 6,778 in Weis Markets on December 27, 2024 and sell it today you would earn a total of 998.00 from holding Weis Markets or generate 14.72% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Weis Markets vs. Krispy Kreme
Performance |
Timeline |
Weis Markets |
Krispy Kreme |
Weis Markets and Krispy Kreme Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Weis Markets and Krispy Kreme
The main advantage of trading using opposite Weis Markets and Krispy Kreme positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Weis Markets position performs unexpectedly, Krispy Kreme 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 Krispy Kreme will offset losses from the drop in Krispy Kreme's long position.Weis Markets vs. Natural Grocers by | Weis Markets vs. Ingles Markets Incorporated | Weis Markets vs. Grocery Outlet Holding | Weis Markets vs. Village Super Market |
Krispy Kreme vs. Natural Grocers by | Krispy Kreme vs. Sprouts Farmers Market | Krispy Kreme vs. Albertsons Companies | Krispy Kreme vs. Ingles Markets Incorporated |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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