Correlation Between Sprouts Farmers and Weis Markets
Can any of the company-specific risk be diversified away by investing in both Sprouts Farmers 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 Sprouts Farmers and Weis Markets into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sprouts Farmers Market and Weis Markets, you can compare the effects of market volatilities on Sprouts Farmers 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 Sprouts Farmers with a short position of Weis Markets. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sprouts Farmers and Weis Markets.
Diversification Opportunities for Sprouts Farmers and Weis Markets
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sprouts and Weis is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Sprouts Farmers Market and Weis Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Weis Markets and Sprouts Farmers 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 Sprouts Farmers Market 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 Sprouts Farmers i.e., Sprouts Farmers and Weis Markets go up and down completely randomly.
Pair Corralation between Sprouts Farmers and Weis Markets
Considering the 90-day investment horizon Sprouts Farmers Market is expected to under-perform the Weis Markets. But the stock apears to be less risky and, when comparing its historical volatility, Sprouts Farmers Market is 1.01 times less risky than Weis Markets. The stock trades about -0.27 of its potential returns per unit of risk. The Weis Markets is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 7,310 in Weis Markets on June 7, 2025 and sell it today you would lose (87.00) from holding Weis Markets or give up 1.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sprouts Farmers Market vs. Weis Markets
Performance |
| Timeline |
| Sprouts Farmers Market |
| Weis Markets |
Sprouts Farmers and Weis Markets Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sprouts Farmers and Weis Markets
The main advantage of trading using opposite Sprouts Farmers and Weis Markets positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sprouts Farmers 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.| Sprouts Farmers vs. Grocery Outlet Holding | Sprouts Farmers vs. Ingles Markets Incorporated | Sprouts Farmers vs. Natural Grocers by | Sprouts Farmers vs. Albertsons Companies |
| Weis Markets vs. Village Super Market | Weis Markets vs. Ingles Markets Incorporated | Weis Markets vs. Natural Grocers by | Weis Markets vs. Grocery Outlet Holding |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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