Correlation Between Strattec Security and Weyco

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Can any of the company-specific risk be diversified away by investing in both Strattec Security 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 Strattec Security and Weyco into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Strattec Security and Weyco Group, you can compare the effects of market volatilities on Strattec Security 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 Strattec Security with a short position of Weyco. Check out your portfolio center. Please also check ongoing floating volatility patterns of Strattec Security and Weyco.

Diversification Opportunities for Strattec Security and Weyco

0.15
  Correlation Coefficient

Average diversification

The 3 months correlation between Strattec and Weyco is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Strattec Security and Weyco Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Weyco Group and Strattec Security 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 Strattec Security 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 Strattec Security i.e., Strattec Security and Weyco go up and down completely randomly.

Pair Corralation between Strattec Security and Weyco

Given the investment horizon of 90 days Strattec Security is expected to under-perform the Weyco. In addition to that, Strattec Security is 1.17 times more volatile than Weyco Group. It trades about 0.0 of its total potential returns per unit of risk. Weyco Group is currently generating about 0.05 per unit of volatility. If you would invest  2,735  in Weyco Group on August 19, 2025 and sell it today you would earn a total of  162.00  from holding Weyco Group or generate 5.92% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Strattec Security  vs.  Weyco Group

 Performance 
       Timeline  
Strattec Security 

Risk-Adjusted Performance

Weakest

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

Risk-Adjusted Performance

Fair

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Weyco Group are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Weyco may actually be approaching a critical reversion point that can send shares even higher in December 2025.

Strattec Security and Weyco Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Strattec Security and Weyco

The main advantage of trading using opposite Strattec Security and Weyco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Strattec Security 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 Strattec Security 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.
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 Transaction History module to view history of all your transactions and understand their impact on performance.

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