Correlation Between One Media and Walmart
Can any of the company-specific risk be diversified away by investing in both One Media 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 One Media and Walmart into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between One Media iP and Walmart, you can compare the effects of market volatilities on One Media 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 One Media with a short position of Walmart. Check out your portfolio center. Please also check ongoing floating volatility patterns of One Media and Walmart.
Diversification Opportunities for One Media and Walmart
Pay attention - limited upside
The 3 months correlation between One and Walmart is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding One Media iP and Walmart in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Walmart and One Media 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 One Media iP 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 One Media i.e., One Media and Walmart go up and down completely randomly.
Pair Corralation between One Media and Walmart
If you would invest 400.00 in One Media iP on September 12, 2024 and sell it today you would earn a total of 20.00 from holding One Media iP or generate 5.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
One Media iP vs. Walmart
Performance |
| Timeline |
| One Media iP |
| Walmart |
One Media and Walmart Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with One Media and Walmart
The main advantage of trading using opposite One Media and Walmart positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if One Media 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.| One Media vs. Catalyst Media Group | One Media vs. CATLIN GROUP | One Media vs. Tamburi Investment Partners | One Media vs. Magnora ASA |
| Walmart vs. Westlake Chemical Corp | Walmart vs. Prosiebensat 1 Media | Walmart vs. Live Nation Entertainment | Walmart vs. One Media iP |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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