Correlation Between Walmart and SANTANDER
Can any of the company-specific risk be diversified away by investing in both Walmart and SANTANDER 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 SANTANDER into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walmart and SANTANDER UK 10, you can compare the effects of market volatilities on Walmart and SANTANDER 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 SANTANDER. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walmart and SANTANDER.
Diversification Opportunities for Walmart and SANTANDER
Pay attention - limited upside
The 3 months correlation between Walmart and SANTANDER is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Walmart and SANTANDER UK 10 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SANTANDER UK 10 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 SANTANDER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SANTANDER UK 10 has no effect on the direction of Walmart i.e., Walmart and SANTANDER go up and down completely randomly.
Pair Corralation between Walmart and SANTANDER
If you would invest 5,960 in Walmart on October 20, 2024 and sell it today you would earn a total of 0.00 from holding Walmart or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
Walmart vs. SANTANDER UK 10
Performance |
| Timeline |
| Walmart |
| SANTANDER UK 10 |
Walmart and SANTANDER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walmart and SANTANDER
The main advantage of trading using opposite Walmart and SANTANDER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walmart position performs unexpectedly, SANTANDER 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 SANTANDER will offset losses from the drop in SANTANDER's long position.| Walmart vs. Futura Medical | Walmart vs. SMA Solar Technology | Walmart vs. Oxford Technology 2 | Walmart vs. Spotify Technology SA |
| SANTANDER vs. Samsung Electronics Co | SANTANDER vs. Samsung Electronics Co | SANTANDER vs. Toyota Motor Corp | SANTANDER vs. Reliance Industries Ltd |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |