Correlation Between Matba Rofex and Walmart
Can any of the company-specific risk be diversified away by investing in both Matba Rofex 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 Matba Rofex and Walmart into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Matba Rofex SA and Walmart, you can compare the effects of market volatilities on Matba Rofex 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 Matba Rofex with a short position of Walmart. Check out your portfolio center. Please also check ongoing floating volatility patterns of Matba Rofex and Walmart.
Diversification Opportunities for Matba Rofex and Walmart
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Matba and Walmart is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Matba Rofex SA and Walmart in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Walmart and Matba Rofex 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 Matba Rofex SA 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 Matba Rofex i.e., Matba Rofex and Walmart go up and down completely randomly.
Pair Corralation between Matba Rofex and Walmart
Assuming the 90 days trading horizon Matba Rofex SA is expected to under-perform the Walmart. In addition to that, Matba Rofex is 2.57 times more volatile than Walmart. It trades about -0.18 of its total potential returns per unit of risk. Walmart is currently generating about 0.47 per unit of volatility. If you would invest 588,000 in Walmart on November 2, 2024 and sell it today you would earn a total of 57,000 from holding Walmart or generate 9.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Matba Rofex SA vs. Walmart
Performance |
| Timeline |
| Matba Rofex SA |
| Walmart |
Matba Rofex and Walmart Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Matba Rofex and Walmart
The main advantage of trading using opposite Matba Rofex and Walmart positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Matba Rofex 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.| Matba Rofex vs. Compania de Transporte | Matba Rofex vs. Agrometal SAI | Matba Rofex vs. United States Steel | Matba Rofex vs. Transportadora de Gas |
| Walmart vs. Compania de Transporte | Walmart vs. Agrometal SAI | Walmart vs. Harmony Gold Mining | Walmart vs. Telecom Argentina |
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 Stocks Directory module to find actively traded stocks across global markets.
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