Correlation Between Walmart and Wal-Mart
Can any of the company-specific risk be diversified away by investing in both Walmart and Wal-Mart 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 Wal-Mart into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walmart and Wal Mart de Mxico, you can compare the effects of market volatilities on Walmart and Wal-Mart 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 Wal-Mart. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walmart and Wal-Mart.
Diversification Opportunities for Walmart and Wal-Mart
Almost no diversification
The 3 months correlation between Walmart and Wal-Mart is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Walmart and Wal Mart de Mxico in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wal Mart de 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 Wal-Mart. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wal Mart de has no effect on the direction of Walmart i.e., Walmart and Wal-Mart go up and down completely randomly.
Pair Corralation between Walmart and Wal-Mart
Assuming the 90 days horizon Walmart is expected to generate 1.99 times less return on investment than Wal-Mart. But when comparing it to its historical volatility, Walmart is 4.06 times less risky than Wal-Mart. It trades about 0.12 of its potential returns per unit of risk. Wal Mart de Mxico is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 100.00 in Wal Mart de Mxico on September 25, 2024 and sell it today you would earn a total of 172.00 from holding Wal Mart de Mxico or generate 172.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 99.8% |
Values | Daily Returns |
Walmart vs. Wal Mart de Mxico
Performance |
Timeline |
Walmart |
Wal Mart de |
Walmart and Wal-Mart Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Walmart and Wal-Mart
The main advantage of trading using opposite Walmart and Wal-Mart positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walmart position performs unexpectedly, Wal-Mart 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 Wal-Mart will offset losses from the drop in Wal-Mart's long position.Walmart vs. REVO INSURANCE SPA | Walmart vs. CHINA EDUCATION GROUP | Walmart vs. Strategic Education | Walmart vs. Zurich Insurance Group |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
Stocks Directory Find actively traded stocks across global markets | |
Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |