Correlation Between Vastned Retail and Walmart
Can any of the company-specific risk be diversified away by investing in both Vastned Retail 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 Vastned Retail and Walmart into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vastned Retail NV and Walmart, you can compare the effects of market volatilities on Vastned Retail 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 Vastned Retail with a short position of Walmart. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vastned Retail and Walmart.
Diversification Opportunities for Vastned Retail and Walmart
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Vastned and Walmart is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Vastned Retail NV and Walmart in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Walmart and Vastned Retail 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 Vastned Retail NV 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 Vastned Retail i.e., Vastned Retail and Walmart go up and down completely randomly.
Pair Corralation between Vastned Retail and Walmart
Assuming the 90 days horizon Vastned Retail is expected to generate 15.97 times less return on investment than Walmart. But when comparing it to its historical volatility, Vastned Retail NV is 1.67 times less risky than Walmart. It trades about 0.04 of its potential returns per unit of risk. Walmart is currently generating about 0.36 of returns per unit of risk over similar time horizon. If you would invest 7,233 in Walmart on August 29, 2024 and sell it today you would earn a total of 1,479 from holding Walmart or generate 20.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 97.67% |
| Values | Daily Returns |
Vastned Retail NV vs. Walmart
Performance |
| Timeline |
| Vastned Retail NV |
| Walmart |
Vastned Retail and Walmart Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vastned Retail and Walmart
The main advantage of trading using opposite Vastned Retail and Walmart positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vastned Retail 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.| Vastned Retail vs. Martin Marietta Materials | Vastned Retail vs. SCANSOURCE | Vastned Retail vs. NORTHEAST UTILITIES | Vastned Retail vs. Check Point Software |
| Walmart vs. Tradeweb Markets | Walmart vs. Check Point Software | Walmart vs. Vastned Retail NV | Walmart vs. CPU SOFTWAREHOUSE |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |