Correlation Between Walmart and Skandinaviska Enskilda
Can any of the company-specific risk be diversified away by investing in both Walmart and Skandinaviska Enskilda 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 Skandinaviska Enskilda into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walmart and Skandinaviska Enskilda Banken, you can compare the effects of market volatilities on Walmart and Skandinaviska Enskilda 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 Skandinaviska Enskilda. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walmart and Skandinaviska Enskilda.
Diversification Opportunities for Walmart and Skandinaviska Enskilda
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Walmart and Skandinaviska is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Walmart and Skandinaviska Enskilda Banken in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Skandinaviska Enskilda 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 Skandinaviska Enskilda. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Skandinaviska Enskilda has no effect on the direction of Walmart i.e., Walmart and Skandinaviska Enskilda go up and down completely randomly.
Pair Corralation between Walmart and Skandinaviska Enskilda
If you would invest 15,160 in Skandinaviska Enskilda Banken on October 20, 2024 and sell it today you would earn a total of 1,120 from holding Skandinaviska Enskilda Banken or generate 7.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Walmart vs. Skandinaviska Enskilda Banken
Performance |
| Timeline |
| Walmart |
| Skandinaviska Enskilda |
Walmart and Skandinaviska Enskilda Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walmart and Skandinaviska Enskilda
The main advantage of trading using opposite Walmart and Skandinaviska Enskilda positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walmart position performs unexpectedly, Skandinaviska Enskilda 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 Skandinaviska Enskilda will offset losses from the drop in Skandinaviska Enskilda's long position.| Walmart vs. Futura Medical | Walmart vs. SMA Solar Technology | Walmart vs. Oxford Technology 2 | Walmart vs. Spotify Technology SA |
| Skandinaviska Enskilda vs. Walmart | Skandinaviska Enskilda vs. BYD Co | Skandinaviska Enskilda vs. Volkswagen AG | Skandinaviska Enskilda vs. Volkswagen AG Non Vtg |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |