Correlation Between Jardine Matheson and Walmart
Can any of the company-specific risk be diversified away by investing in both Jardine Matheson 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 Jardine Matheson and Walmart into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jardine Matheson Holdings and Walmart, you can compare the effects of market volatilities on Jardine Matheson 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 Jardine Matheson with a short position of Walmart. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jardine Matheson and Walmart.
Diversification Opportunities for Jardine Matheson and Walmart
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Jardine and Walmart is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Jardine Matheson Holdings and Walmart in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Walmart and Jardine Matheson 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 Jardine Matheson Holdings 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 Jardine Matheson i.e., Jardine Matheson and Walmart go up and down completely randomly.
Pair Corralation between Jardine Matheson and Walmart
Assuming the 90 days trading horizon Jardine Matheson is expected to generate 61.64 times less return on investment than Walmart. But when comparing it to its historical volatility, Jardine Matheson Holdings is 99.29 times less risky than Walmart. It trades about 0.08 of its potential returns per unit of risk. Walmart is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 4,380 in Walmart on August 30, 2024 and sell it today you would earn a total of 1,580 from holding Walmart or generate 36.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.5% |
| Values | Daily Returns |
Jardine Matheson Holdings vs. Walmart
Performance |
| Timeline |
| Jardine Matheson Holdings |
| Walmart |
Jardine Matheson and Walmart Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jardine Matheson and Walmart
The main advantage of trading using opposite Jardine Matheson and Walmart positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jardine Matheson 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.| Jardine Matheson vs. Jupiter Green Investment | Jardine Matheson vs. Universal Music Group | Jardine Matheson vs. Zoom Video Communications | Jardine Matheson vs. Seraphim Space Investment |
| Walmart vs. Lendinvest PLC | Walmart vs. Neometals | Walmart vs. Albion Technology General | Walmart vs. Jupiter Fund Management |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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