Correlation Between Continental Gold and Weyco

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

By analyzing existing cross correlation between Continental Gold and Weyco Group, you can compare the effects of market volatilities on Continental Gold and Weyco 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 Continental Gold with a short position of Weyco. Check out your portfolio center. Please also check ongoing floating volatility patterns of Continental Gold and Weyco.

Diversification Opportunities for Continental Gold and Weyco

0.0

Correlation Coefficient

Continental Gold  Weyco

Pay attention - limited upside

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

Pair Corralation between Continental Gold and Weyco

If you would invest (100.00) in Continental Gold on February 2, 2024 and sell it today you would earn a total of  100.00  from holding Continental Gold or generate -100.0% return on investment over 90 days.

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

Continental Gold  vs.  Weyco Group

Continental Gold

Risk-Adjusted Performance

0 of 100

Very Weak

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

Weyco Group

Risk-Adjusted Performance

0 of 100

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 latest abnormal performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with Continental Gold and Weyco

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

The idea behind Continental Gold and Weyco Group 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.