Correlation Between Weyco and OneSmart International

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

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

Diversification Opportunities for Weyco and OneSmart International

-0.06

Correlation Coefficient

Weyco  OneSmart International

Good diversification

The 3 months correlation between Weyco and OneSmart is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Weyco Group and OneSmart International Educati in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OneSmart International 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 OneSmart International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OneSmart International has no effect on the direction of Weyco i.e., Weyco and OneSmart International go up and down completely randomly.

Pair Corralation between Weyco and OneSmart International

If you would invest  2,833  in Weyco Group on March 7, 2024 and sell it today you would earn a total of  222.00  from holding Weyco Group or generate 7.84% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	1.59%
Values	Daily Returns

Weyco Group  vs.  OneSmart International Educati

Weyco Group

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Weyco Group are ranked lower than 6 (%) 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 July 2024.

OneSmart International

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days OneSmart International Education has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, OneSmart International is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Weyco and OneSmart International

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

The idea behind Weyco Group and OneSmart International Education 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.