Correlation Between Bertrandt and Walmart
Can any of the company-specific risk be diversified away by investing in both Bertrandt 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 Bertrandt and Walmart into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bertrandt AG and Walmart, you can compare the effects of market volatilities on Bertrandt 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 Bertrandt with a short position of Walmart. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bertrandt and Walmart.
Diversification Opportunities for Bertrandt and Walmart
Modest diversification
The 3 months correlation between Bertrandt and Walmart is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Bertrandt AG and Walmart in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Walmart and Bertrandt 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 Bertrandt AG 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 Bertrandt i.e., Bertrandt and Walmart go up and down completely randomly.
Pair Corralation between Bertrandt and Walmart
If you would invest 1,800 in Bertrandt AG on October 25, 2024 and sell it today you would earn a total of 118.00 from holding Bertrandt AG or generate 6.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
Bertrandt AG vs. Walmart
Performance |
| Timeline |
| Bertrandt AG |
| Walmart |
Bertrandt and Walmart Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bertrandt and Walmart
The main advantage of trading using opposite Bertrandt and Walmart positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bertrandt 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.| Bertrandt vs. Martin Marietta Materials | Bertrandt vs. JD Sports Fashion | Bertrandt vs. JB Hunt Transport | Bertrandt vs. Summit Materials Cl |
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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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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