Correlation Between Exceed and Walmart
Can any of the company-specific risk be diversified away by investing in both Exceed and Walmart 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 Exceed and Walmart into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Exceed Company and Walmart, you can compare the effects of market volatilities on Exceed and Walmart 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 Exceed with a short position of Walmart. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exceed and Walmart.
Diversification Opportunities for Exceed and Walmart
Pay attention - limited upside
The 3 months correlation between Exceed and Walmart is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Exceed Company and Walmart in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Walmart and Exceed 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 Exceed Company are associated (or correlated) with Walmart. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Walmart has no effect on the direction of Exceed i.e., Exceed and Walmart go up and down completely randomly.
Pair Corralation between Exceed and Walmart
If you would invest 4,980 in Walmart on January 20, 2024 and sell it today you would earn a total of 946.00 from holding Walmart or generate 19.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Exceed Company vs. Walmart
Performance |
| Timeline |
| Exceed Company |
| Walmart |
Exceed and Walmart Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Exceed and Walmart
The main advantage of trading using opposite Exceed and Walmart positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Exceed position performs unexpectedly, Walmart 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 Walmart will offset losses from the drop in Walmart's long position.| Exceed vs. Intema Solutions | Exceed vs. 888 Holdings | Exceed vs. Royal Wins | Exceed vs. Churchill Downs Incorporated |
| Walmart vs. Aquagold International | Walmart vs. Morningstar Unconstrained Allocation | Walmart vs. Thrivent High Yield | Walmart vs. Via Renewables |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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