Correlation Between GoldMining and Walmart
Can any of the company-specific risk be diversified away by investing in both GoldMining 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 GoldMining and Walmart into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GoldMining and Walmart, you can compare the effects of market volatilities on GoldMining 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 GoldMining with a short position of Walmart. Check out your portfolio center. Please also check ongoing floating volatility patterns of GoldMining and Walmart.
Diversification Opportunities for GoldMining and Walmart
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GoldMining and Walmart is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GoldMining and Walmart in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Walmart and GoldMining 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 GoldMining 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 GoldMining i.e., GoldMining and Walmart go up and down completely randomly.
Pair Corralation between GoldMining and Walmart
If you would invest 5,960 in Walmart on September 15, 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 | Flat |
| Strength | Insignificant |
| Accuracy | 68.18% |
| Values | Daily Returns |
GoldMining vs. Walmart
Performance |
| Timeline |
| GoldMining |
| Walmart |
GoldMining and Walmart Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GoldMining and Walmart
The main advantage of trading using opposite GoldMining and Walmart positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GoldMining 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.| GoldMining vs. Samsung Electronics Co | GoldMining vs. Samsung Electronics Co | GoldMining vs. Hyundai Motor | GoldMining vs. Reliance Industries Ltd |
| Walmart vs. GoldMining | Walmart vs. Adriatic Metals | Walmart vs. METALL ZUG AG | Walmart vs. Panther Metals PLC |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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