Correlation Between XLMedia PLC and Walmart
Can any of the company-specific risk be diversified away by investing in both XLMedia PLC 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 XLMedia PLC and Walmart into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between XLMedia PLC and Walmart, you can compare the effects of market volatilities on XLMedia PLC 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 XLMedia PLC with a short position of Walmart. Check out your portfolio center. Please also check ongoing floating volatility patterns of XLMedia PLC and Walmart.
Diversification Opportunities for XLMedia PLC and Walmart
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between XLMedia and Walmart is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding XLMedia PLC and Walmart in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Walmart and XLMedia PLC 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 XLMedia PLC 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 XLMedia PLC i.e., XLMedia PLC and Walmart go up and down completely randomly.
Pair Corralation between XLMedia PLC and Walmart
If you would invest 8,085 in Walmart on September 15, 2024 and sell it today you would earn a total of 934.00 from holding Walmart or generate 11.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
XLMedia PLC vs. Walmart
Performance |
| Timeline |
| XLMedia PLC |
| Walmart |
XLMedia PLC and Walmart Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XLMedia PLC and Walmart
The main advantage of trading using opposite XLMedia PLC and Walmart positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XLMedia PLC 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.| XLMedia PLC vs. Tencent Holdings | XLMedia PLC vs. Superior Plus Corp | XLMedia PLC vs. SIVERS SEMICONDUCTORS AB | XLMedia PLC vs. NorAm Drilling AS |
| Walmart vs. PLAYSTUDIOS A DL 0001 | Walmart vs. XLMedia PLC | Walmart vs. HF SINCLAIR P | Walmart vs. Norwegian Air Shuttle |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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