Correlation Between WEBUY GLOBAL and Winmark

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

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

Diversification Opportunities for WEBUY GLOBAL and Winmark

0.3

Correlation Coefficient

WEBUY GLOBAL  Winmark

Weak diversification

The 3 months correlation between WEBUY and Winmark is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding WEBUY GLOBAL LTD and Winmark in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Winmark and WEBUY GLOBAL 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 WEBUY GLOBAL LTD are associated (or correlated) with Winmark. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Winmark has no effect on the direction of WEBUY GLOBAL i.e., WEBUY GLOBAL and Winmark go up and down completely randomly.

Pair Corralation between WEBUY GLOBAL and Winmark

Given the investment horizon of 90 days WEBUY GLOBAL LTD is expected to under-perform the Winmark. In addition to that, WEBUY GLOBAL is 1.75 times more volatile than Winmark. It trades about -0.37 of its total potential returns per unit of risk. Winmark is currently generating about -0.02 per unit of volatility. If you would invest  36,424  in Winmark on January 29, 2024 and sell it today you would lose (424.00) from holding Winmark or give up 1.16% of portfolio value over 90 days.

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

WEBUY GLOBAL LTD  vs.  Winmark

WEBUY GLOBAL LTD

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days WEBUY GLOBAL LTD has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in May 2024. The current disturbance may also be a sign of long term up-swing for the company investors.

Winmark

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Winmark has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Winmark is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with WEBUY GLOBAL and Winmark

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

The idea behind WEBUY GLOBAL LTD and Winmark 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.