Correlation Between Weyco and Yuexiu Transport

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

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

Diversification Opportunities for Weyco and Yuexiu Transport

0.26

Correlation Coefficient

Weyco  Yuexiu Transport

Modest diversification

The 3 months correlation between Weyco and Yuexiu is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Weyco Group and Yuexiu Transport Infrastructur in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yuexiu Transport Inf 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 Yuexiu Transport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yuexiu Transport Inf has no effect on the direction of Weyco i.e., Weyco and Yuexiu Transport go up and down completely randomly.

Pair Corralation between Weyco and Yuexiu Transport

Given the investment horizon of 90 days Weyco Group is expected to under-perform the Yuexiu Transport. In addition to that, Weyco is 4.9 times more volatile than Yuexiu Transport Infrastructure. It trades about -0.02 of its total potential returns per unit of risk. Yuexiu Transport Infrastructure is currently generating about 0.13 per unit of volatility. If you would invest  56.00  in Yuexiu Transport Infrastructure on May 7, 2025 and sell it today you would earn a total of  2.00  from holding Yuexiu Transport Infrastructure or generate 3.57% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.41%
Values	Daily Returns

Weyco Group  vs.  Yuexiu Transport Infrastructur

Weyco Group

Risk-Adjusted Performance

Weakest

Over the last 90 days Weyco Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Weyco is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

Yuexiu Transport Inf

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Yuexiu Transport Infrastructure are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Yuexiu Transport is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Weyco and Yuexiu Transport

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

The idea behind Weyco Group and Yuexiu Transport Infrastructure 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.