Correlation Between Binah Capital and Weyco

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

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

Diversification Opportunities for Binah Capital and Weyco

-0.53

Correlation Coefficient

Binah Capital  Weyco

Excellent diversification

The 3 months correlation between Binah and Weyco is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Binah Capital Group, and Weyco Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Weyco Group and Binah Capital 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 Binah Capital Group, 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 Binah Capital i.e., Binah Capital and Weyco go up and down completely randomly.

Pair Corralation between Binah Capital and Weyco

Assuming the 90 days horizon Binah Capital Group, is expected to generate 6.8 times more return on investment than Weyco. However, Binah Capital is 6.8 times more volatile than Weyco Group. It trades about 0.12 of its potential returns per unit of risk. Weyco Group is currently generating about 0.06 per unit of risk. If you would invest  4.02  in Binah Capital Group, on September 26, 2024 and sell it today you would earn a total of  0.98  from holding Binah Capital Group, or generate 24.38% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	61.9%
Values	Daily Returns

Binah Capital Group,  vs.  Weyco Group

Binah Capital Group,

Risk-Adjusted Performance

0 of 100

OK

Over the last 90 days Binah Capital Group, has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly uncertain basic indicators, Binah Capital showed solid returns over the last few months and may actually be approaching a breakup point.

Weyco Group

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Weyco Group are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unfluctuating basic indicators, Weyco unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Binah Capital and Weyco

The main advantage of trading using opposite Binah Capital and Weyco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Binah Capital 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 Binah Capital Group, 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.