Correlation Between Weis Markets and Missfresh

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

By analyzing existing cross correlation between Weis Markets and Missfresh Ltd ADR, you can compare the effects of market volatilities on Weis Markets and Missfresh 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 Missfresh. Check out your portfolio center. Please also check ongoing floating volatility patterns of Weis Markets and Missfresh.

Diversification Opportunities for Weis Markets and Missfresh

0.0

Correlation Coefficient

Weis Markets  Missfresh

Pay attention - limited upside

The 3 months correlation between Weis and Missfresh is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Weis Markets and Missfresh Ltd ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Missfresh ADR 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 Missfresh. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Missfresh ADR has no effect on the direction of Weis Markets i.e., Weis Markets and Missfresh go up and down completely randomly.

Pair Corralation between Weis Markets and Missfresh

If you would invest  6,718  in Weis Markets on December 28, 2024 and sell it today you would earn a total of  1,063  from holding Weis Markets or generate 15.82% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Weis Markets  vs.  Missfresh Ltd ADR

Weis Markets

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Weis Markets are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite quite unsteady primary indicators, Weis Markets disclosed solid returns over the last few months and may actually be approaching a breakup point.

Missfresh ADR

Risk-Adjusted Performance

Very Weak

Over the last 90 days Missfresh Ltd ADR has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical and fundamental indicators, Missfresh is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Weis Markets and Missfresh

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

The idea behind Weis Markets and Missfresh Ltd ADR 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.