Correlation Between EAST Old and Walmart
Can any of the company-specific risk be diversified away by investing in both EAST Old 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 EAST Old and Walmart into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EAST Old and Walmart, you can compare the effects of market volatilities on EAST Old 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 EAST Old with a short position of Walmart. Check out your portfolio center. Please also check ongoing floating volatility patterns of EAST Old and Walmart.
Diversification Opportunities for EAST Old and Walmart
Pay attention - limited upside
The 3 months correlation between EAST and Walmart is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding EAST Old and Walmart in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Walmart and EAST Old 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 EAST Old 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 EAST Old i.e., EAST Old and Walmart go up and down completely randomly.
Pair Corralation between EAST Old and Walmart
If you would invest 4,541 in Walmart on December 6, 2024 and sell it today you would earn a total of 4,923 from holding Walmart or generate 108.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
EAST Old vs. Walmart
Performance |
| Timeline |
| EAST Old |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| Walmart |
EAST Old and Walmart Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EAST Old and Walmart
The main advantage of trading using opposite EAST Old and Walmart positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EAST Old 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.| EAST Old vs. Iconic Brands | EAST Old vs. Andrew Peller Limited | EAST Old vs. Splash Beverage Group | EAST Old vs. Fresh Grapes LLC |
| Walmart vs. Aquagold International | Walmart vs. Thrivent High Yield | Walmart vs. Morningstar Unconstrained Allocation | Walmart vs. Via Renewables |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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