Correlation Between Vanguard Reit and Walmart
Can any of the company-specific risk be diversified away by investing in both Vanguard Reit 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 Vanguard Reit and Walmart into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vanguard Reit Index and Walmart, you can compare the effects of market volatilities on Vanguard Reit 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 Vanguard Reit with a short position of Walmart. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vanguard Reit and Walmart.
Diversification Opportunities for Vanguard Reit and Walmart
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Vanguard and Walmart is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Vanguard Reit Index and Walmart in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Walmart and Vanguard Reit 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 Vanguard Reit Index 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 Vanguard Reit i.e., Vanguard Reit and Walmart go up and down completely randomly.
Pair Corralation between Vanguard Reit and Walmart
Assuming the 90 days horizon Vanguard Reit is expected to generate 6.92 times less return on investment than Walmart. In addition to that, Vanguard Reit is 1.27 times more volatile than Walmart. It trades about 0.01 of its total potential returns per unit of risk. Walmart is currently generating about 0.08 per unit of volatility. 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 | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Vanguard Reit Index vs. Walmart
Performance |
| Timeline |
| Vanguard Reit Index |
| Walmart |
Vanguard Reit and Walmart Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vanguard Reit and Walmart
The main advantage of trading using opposite Vanguard Reit and Walmart positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vanguard Reit 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.| Vanguard Reit vs. Realty Income Corp | Vanguard Reit vs. Dynex Capital | Vanguard Reit vs. First Industrial Realty | Vanguard Reit vs. Healthcare Realty Trust |
| 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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