Correlation Between Kontoor Brands and WALMART
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By analyzing existing cross correlation between Kontoor Brands and WALMART INC 3625, you can compare the effects of market volatilities on Kontoor Brands 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 Kontoor Brands with a short position of WALMART. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kontoor Brands and WALMART.
Diversification Opportunities for Kontoor Brands and WALMART
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Kontoor and WALMART is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Kontoor Brands and WALMART INC 3625 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WALMART INC 3625 and Kontoor Brands 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 Kontoor Brands 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 3625 has no effect on the direction of Kontoor Brands i.e., Kontoor Brands and WALMART go up and down completely randomly.
Pair Corralation between Kontoor Brands and WALMART
Considering the 90-day investment horizon Kontoor Brands is expected to generate 0.75 times more return on investment than WALMART. However, Kontoor Brands is 1.33 times less risky than WALMART. It trades about 0.36 of its potential returns per unit of risk. WALMART INC 3625 is currently generating about 0.26 per unit of risk. If you would invest 8,541 in Kontoor Brands on November 1, 2024 and sell it today you would earn a total of 1,022 from holding Kontoor Brands or generate 11.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 85.0% |
| Values | Daily Returns |
Kontoor Brands vs. WALMART INC 3625
Performance |
| Timeline |
| Kontoor Brands |
| WALMART INC 3625 |
Kontoor Brands and WALMART Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kontoor Brands and WALMART
The main advantage of trading using opposite Kontoor Brands and WALMART positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kontoor Brands 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.| Kontoor Brands vs. Vince Holding Corp | Kontoor Brands vs. Ermenegildo Zegna NV | Kontoor Brands vs. Columbia Sportswear | Kontoor Brands vs. Gildan Activewear |
| WALMART vs. Kontoor Brands | WALMART vs. Cintas | WALMART vs. Capri Holdings | WALMART vs. Dave Busters Entertainment |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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