Correlation Between NeXGold Mining and Walmart
Can any of the company-specific risk be diversified away by investing in both NeXGold Mining 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 NeXGold Mining and Walmart into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NeXGold Mining Corp and Walmart Inc CDR, you can compare the effects of market volatilities on NeXGold Mining 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 NeXGold Mining with a short position of Walmart. Check out your portfolio center. Please also check ongoing floating volatility patterns of NeXGold Mining and Walmart.
Diversification Opportunities for NeXGold Mining and Walmart
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between NeXGold and Walmart is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding NeXGold Mining 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 NeXGold Mining 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 NeXGold Mining 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 NeXGold Mining i.e., NeXGold Mining and Walmart go up and down completely randomly.
Pair Corralation between NeXGold Mining and Walmart
Assuming the 90 days trading horizon NeXGold Mining Corp is expected to under-perform the Walmart. In addition to that, NeXGold Mining is 2.54 times more volatile than Walmart Inc CDR. It trades about -0.16 of its total potential returns per unit of risk. Walmart Inc CDR is currently generating about 0.28 per unit of volatility. If you would invest 3,524 in Walmart Inc CDR on August 30, 2024 and sell it today you would earn a total of 472.00 from holding Walmart Inc CDR or generate 13.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NeXGold Mining Corp vs. Walmart Inc CDR
Performance |
| Timeline |
| NeXGold Mining Corp |
| Walmart Inc CDR |
NeXGold Mining and Walmart Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NeXGold Mining and Walmart
The main advantage of trading using opposite NeXGold Mining and Walmart positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NeXGold Mining 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.| NeXGold Mining vs. Highwood Asset Management | NeXGold Mining vs. Faction Investment Group | NeXGold Mining vs. CNJ Capital Investments | NeXGold Mining vs. Bip Investment Corp |
| Walmart vs. Nicola Mining | Walmart vs. Northstar Clean Technologies | Walmart vs. North American Construction | Walmart vs. Air Canada |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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