Correlation Between Centaur Media and Walmart
Can any of the company-specific risk be diversified away by investing in both Centaur Media 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 Centaur Media and Walmart into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Centaur Media and Walmart, you can compare the effects of market volatilities on Centaur Media 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 Centaur Media with a short position of Walmart. Check out your portfolio center. Please also check ongoing floating volatility patterns of Centaur Media and Walmart.
Diversification Opportunities for Centaur Media and Walmart
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Centaur and Walmart is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Centaur Media and Walmart in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Walmart and Centaur Media 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 Centaur Media 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 Centaur Media i.e., Centaur Media and Walmart go up and down completely randomly.
Pair Corralation between Centaur Media and Walmart
Assuming the 90 days trading horizon Centaur Media is expected to under-perform the Walmart. In addition to that, Centaur Media is 85.24 times more volatile than Walmart. It trades about -0.14 of its total potential returns per unit of risk. Walmart is currently generating about 0.09 per unit of volatility. If you would invest 5,939 in Walmart on September 1, 2024 and sell it today you would earn a total of 21.00 from holding Walmart or generate 0.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Centaur Media vs. Walmart
Performance |
| Timeline |
| Centaur Media |
| Walmart |
Centaur Media and Walmart Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Centaur Media and Walmart
The main advantage of trading using opposite Centaur Media and Walmart positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Centaur Media 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.| Centaur Media vs. X FAB Silicon Foundries | Centaur Media vs. Coor Service Management | Centaur Media vs. Hochschild Mining plc | Centaur Media vs. Universal Music Group |
| Walmart vs. Fortune Brands Home | Walmart vs. Universal Music Group | Walmart vs. Allianz Technology Trust | Walmart vs. Flow Traders NV |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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