Correlation Between Walmart and Pensionbee Group
Can any of the company-specific risk be diversified away by investing in both Walmart and Pensionbee Group 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 Pensionbee Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walmart and Pensionbee Group PLC, you can compare the effects of market volatilities on Walmart and Pensionbee Group 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 Pensionbee Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walmart and Pensionbee Group.
Diversification Opportunities for Walmart and Pensionbee Group
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Walmart and Pensionbee is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Walmart and Pensionbee Group PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pensionbee Group PLC 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 Pensionbee Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pensionbee Group PLC has no effect on the direction of Walmart i.e., Walmart and Pensionbee Group go up and down completely randomly.
Pair Corralation between Walmart and Pensionbee Group
Assuming the 90 days trading horizon Walmart is expected to generate 8.3 times less return on investment than Pensionbee Group. But when comparing it to its historical volatility, Walmart is 64.71 times less risky than Pensionbee Group. It trades about 0.09 of its potential returns per unit of risk. Pensionbee Group PLC is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 15,450 in Pensionbee Group PLC on September 15, 2024 and sell it today you would earn a total of 50.00 from holding Pensionbee Group PLC or generate 0.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Walmart vs. Pensionbee Group PLC
Performance |
| Timeline |
| Walmart |
| Pensionbee Group PLC |
Walmart and Pensionbee Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walmart and Pensionbee Group
The main advantage of trading using opposite Walmart and Pensionbee Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walmart position performs unexpectedly, Pensionbee Group 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 Pensionbee Group will offset losses from the drop in Pensionbee Group's long position.| Walmart vs. GoldMining | Walmart vs. Adriatic Metals | Walmart vs. METALL ZUG AG | Walmart vs. Panther Metals PLC |
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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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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