Correlation Between Spectrum Brands and Weis Markets
Can any of the company-specific risk be diversified away by investing in both Spectrum Brands and Weis Markets 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 Spectrum Brands and Weis Markets into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Spectrum Brands Holdings and Weis Markets, you can compare the effects of market volatilities on Spectrum Brands and Weis Markets 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 Spectrum Brands with a short position of Weis Markets. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spectrum Brands and Weis Markets.
Diversification Opportunities for Spectrum Brands and Weis Markets
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Spectrum and Weis is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Spectrum Brands Holdings and Weis Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Weis Markets and Spectrum Brands 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 Spectrum Brands Holdings are associated (or correlated) with Weis Markets. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Weis Markets has no effect on the direction of Spectrum Brands i.e., Spectrum Brands and Weis Markets go up and down completely randomly.
Pair Corralation between Spectrum Brands and Weis Markets
Considering the 90-day investment horizon Spectrum Brands Holdings is expected to under-perform the Weis Markets. In addition to that, Spectrum Brands is 1.02 times more volatile than Weis Markets. It trades about -0.29 of its total potential returns per unit of risk. Weis Markets is currently generating about 0.08 per unit of volatility. If you would invest 6,317 in Weis Markets on January 25, 2024 and sell it today you would earn a total of 117.00 from holding Weis Markets or generate 1.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Spectrum Brands Holdings vs. Weis Markets
Performance |
| Timeline |
| Spectrum Brands Holdings |
| Weis Markets |
Spectrum Brands and Weis Markets Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Spectrum Brands and Weis Markets
The main advantage of trading using opposite Spectrum Brands and Weis Markets positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spectrum Brands position performs unexpectedly, Weis Markets 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 Weis Markets will offset losses from the drop in Weis Markets' long position.| Spectrum Brands vs. European Wax Center | Spectrum Brands vs. Inter Parfums | Spectrum Brands vs. Mannatech Incorporated | Spectrum Brands vs. Nu Skin Enterprises |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |