Correlation Between Walmart and Rite Aid
Can any of the company-specific risk be diversified away by investing in both Walmart and Rite Aid 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 Walmart and Rite Aid into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walmart and Rite Aid, you can compare the effects of market volatilities on Walmart and Rite Aid 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 Walmart with a short position of Rite Aid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walmart and Rite Aid.
Diversification Opportunities for Walmart and Rite Aid
Pay attention - limited upside
The 3 months correlation between Walmart and Rite is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Walmart and Rite Aid in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rite Aid and Walmart 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 Walmart are associated (or correlated) with Rite Aid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rite Aid has no effect on the direction of Walmart i.e., Walmart and Rite Aid go up and down completely randomly.
Pair Corralation between Walmart and Rite Aid
If you would invest 5,939 in Walmart on December 29, 2023 and sell it today you would earn a total of 78.00 from holding Walmart or generate 1.31% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 4.35% |
Values | Daily Returns |
Walmart vs. Rite Aid
Performance |
Timeline |
Walmart |
Rite Aid |
Risk-Adjusted Performance
0 of 100
Low | High |
Very Weak
Walmart and Rite Aid Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Walmart and Rite Aid
The main advantage of trading using opposite Walmart and Rite Aid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walmart position performs unexpectedly, Rite Aid 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 Rite Aid will offset losses from the drop in Rite Aid's long position.Walmart vs. Asure Software | Walmart vs. Cabo Drilling Corp | Walmart vs. Transocean | Walmart vs. AKITA Drilling |
Rite Aid vs. Beyond Inc | Rite Aid vs. RBC Bearings Incorporated | Rite Aid vs. National Vision Holdings | Rite Aid vs. Toro Co |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |