Correlation Between SCHALTBAU HOLDING and Walmart
Can any of the company-specific risk be diversified away by investing in both SCHALTBAU HOLDING 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 SCHALTBAU HOLDING and Walmart into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SCHALTBAU HOLDING and Walmart, you can compare the effects of market volatilities on SCHALTBAU HOLDING 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 SCHALTBAU HOLDING with a short position of Walmart. Check out your portfolio center. Please also check ongoing floating volatility patterns of SCHALTBAU HOLDING and Walmart.
Diversification Opportunities for SCHALTBAU HOLDING and Walmart
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between SCHALTBAU and Walmart is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding SCHALTBAU HOLDING and Walmart in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Walmart and SCHALTBAU HOLDING 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 SCHALTBAU HOLDING 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 SCHALTBAU HOLDING i.e., SCHALTBAU HOLDING and Walmart go up and down completely randomly.
Pair Corralation between SCHALTBAU HOLDING and Walmart
Assuming the 90 days trading horizon SCHALTBAU HOLDING is expected to under-perform the Walmart. But the stock apears to be less risky and, when comparing its historical volatility, SCHALTBAU HOLDING is 1.08 times less risky than Walmart. The stock trades about -0.07 of its potential returns per unit of risk. The Walmart is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 8,787 in Walmart on November 1, 2024 and sell it today you would earn a total of 577.00 from holding Walmart or generate 6.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SCHALTBAU HOLDING vs. Walmart
Performance |
| Timeline |
| SCHALTBAU HOLDING |
| Walmart |
SCHALTBAU HOLDING and Walmart Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SCHALTBAU HOLDING and Walmart
The main advantage of trading using opposite SCHALTBAU HOLDING and Walmart positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SCHALTBAU HOLDING 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.| SCHALTBAU HOLDING vs. NH HOTEL GROUP | SCHALTBAU HOLDING vs. DALATA HOTEL | SCHALTBAU HOLDING vs. Burlington Stores | SCHALTBAU HOLDING vs. BURLINGTON STORES |
| Walmart vs. American Public Education | Walmart vs. Siamgas And Petrochemicals | Walmart vs. betterU Education Corp | Walmart vs. DEVRY EDUCATION GRP |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |