Correlation Between Aya Gold and Walmart
Can any of the company-specific risk be diversified away by investing in both Aya Gold 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 Aya Gold and Walmart into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aya Gold Silver and Walmart Inc CDR, you can compare the effects of market volatilities on Aya Gold 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 Aya Gold with a short position of Walmart. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aya Gold and Walmart.
Diversification Opportunities for Aya Gold and Walmart
Very good diversification
The 3 months correlation between Aya and Walmart is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Aya Gold Silver and Walmart Inc CDR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Walmart Inc CDR and Aya Gold 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 Aya Gold Silver 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 Inc CDR has no effect on the direction of Aya Gold i.e., Aya Gold and Walmart go up and down completely randomly.
Pair Corralation between Aya Gold and Walmart
Assuming the 90 days trading horizon Aya Gold Silver is expected to under-perform the Walmart. In addition to that, Aya Gold is 5.24 times more volatile than Walmart Inc CDR. It trades about -0.22 of its total potential returns per unit of risk. Walmart Inc CDR is currently generating about 0.56 per unit of volatility. If you would invest 3,544 in Walmart Inc CDR on August 31, 2024 and sell it today you would earn a total of 502.00 from holding Walmart Inc CDR or generate 14.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aya Gold Silver vs. Walmart Inc CDR
Performance |
| Timeline |
| Aya Gold Silver |
| Walmart Inc CDR |
Aya Gold and Walmart Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aya Gold and Walmart
The main advantage of trading using opposite Aya Gold and Walmart positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aya Gold 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.| Aya Gold vs. GoGold Resources | Aya Gold vs. AbraSilver Resource Corp | Aya Gold vs. SilverCrest Metals | Aya Gold vs. Santacruz Silv |
| Walmart vs. Financial 15 Split | Walmart vs. Brookfield Investments | Walmart vs. Economic Investment Trust | Walmart vs. 2028 Investment Grade |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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