Correlation Between Weis Markets and Albertsons Companies

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

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

Diversification Opportunities for Weis Markets and Albertsons Companies

0.29

Correlation Coefficient

Weis Markets  Albertsons Companies

Modest diversification

The 3 months correlation between Weis and Albertsons is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Weis Markets and Albertsons Companies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Albertsons Companies and Weis Markets 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 Weis Markets are associated (or correlated) with Albertsons Companies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Albertsons Companies has no effect on the direction of Weis Markets i.e., Weis Markets and Albertsons Companies go up and down completely randomly.

Pair Corralation between Weis Markets and Albertsons Companies

Considering the 90-day investment horizon Weis Markets is expected to under-perform the Albertsons Companies. In addition to that, Weis Markets is 1.28 times more volatile than Albertsons Companies. It trades about -0.15 of its total potential returns per unit of risk. Albertsons Companies is currently generating about -0.1 per unit of volatility. If you would invest  2,177  in Albertsons Companies on May 6, 2025 and sell it today you would lose (216.00) from holding Albertsons Companies or give up 9.92% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Weis Markets  vs.  Albertsons Companies

Weis Markets

Risk-Adjusted Performance

Very Weak

Over the last 90 days Weis Markets has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's primary indicators remain quite persistent which may send shares a bit higher in September 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Albertsons Companies

Risk-Adjusted Performance

Very Weak

Over the last 90 days Albertsons Companies has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's fundamental indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

Pair Trading with Weis Markets and Albertsons Companies

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

The idea behind Weis Markets and Albertsons Companies 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.