Correlation Between Medicenna Therapeutics and Walmart
Can any of the company-specific risk be diversified away by investing in both Medicenna Therapeutics 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 Medicenna Therapeutics and Walmart into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Medicenna Therapeutics Corp and Walmart Inc CDR, you can compare the effects of market volatilities on Medicenna Therapeutics 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 Medicenna Therapeutics with a short position of Walmart. Check out your portfolio center. Please also check ongoing floating volatility patterns of Medicenna Therapeutics and Walmart.
Diversification Opportunities for Medicenna Therapeutics and Walmart
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Medicenna and Walmart is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Medicenna Therapeutics Corp 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 Medicenna Therapeutics 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 Medicenna Therapeutics Corp 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 Medicenna Therapeutics i.e., Medicenna Therapeutics and Walmart go up and down completely randomly.
Pair Corralation between Medicenna Therapeutics and Walmart
Assuming the 90 days trading horizon Medicenna Therapeutics Corp is expected to generate 6.43 times more return on investment than Walmart. However, Medicenna Therapeutics is 6.43 times more volatile than Walmart Inc CDR. It trades about 0.06 of its potential returns per unit of risk. Walmart Inc CDR is currently generating about 0.13 per unit of risk. If you would invest 81.00 in Medicenna Therapeutics Corp on September 3, 2024 and sell it today you would earn a total of 91.00 from holding Medicenna Therapeutics Corp or generate 112.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Medicenna Therapeutics Corp vs. Walmart Inc CDR
Performance |
| Timeline |
| Medicenna Therapeutics |
| Walmart Inc CDR |
Medicenna Therapeutics and Walmart Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Medicenna Therapeutics and Walmart
The main advantage of trading using opposite Medicenna Therapeutics and Walmart positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Medicenna Therapeutics 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.| Medicenna Therapeutics vs. Aptose Biosciences | Medicenna Therapeutics vs. Oncolytics Biotech | Medicenna Therapeutics vs. Helix BioPharma Corp |
| Walmart vs. Xtract One Technologies | Walmart vs. Enduro Metals Corp | Walmart vs. Wishpond Technologies | Walmart vs. Arbor Metals Corp |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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