Correlation Between Walmart and Bolsas Y
Can any of the company-specific risk be diversified away by investing in both Walmart and Bolsas Y 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 Walmart and Bolsas Y into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walmart and Bolsas y Mercados, you can compare the effects of market volatilities on Walmart and Bolsas Y 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 Walmart with a short position of Bolsas Y. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walmart and Bolsas Y.
Diversification Opportunities for Walmart and Bolsas Y
Almost no diversification
The 3 months correlation between Walmart and Bolsas is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Walmart and Bolsas y Mercados in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bolsas y Mercados and Walmart 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 Walmart are associated (or correlated) with Bolsas Y. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bolsas y Mercados has no effect on the direction of Walmart i.e., Walmart and Bolsas Y go up and down completely randomly.
Pair Corralation between Walmart and Bolsas Y
Assuming the 90 days trading horizon Walmart is expected to generate 0.36 times more return on investment than Bolsas Y. However, Walmart is 2.77 times less risky than Bolsas Y. It trades about 0.47 of its potential returns per unit of risk. Bolsas y Mercados is currently generating about -0.07 per unit of risk. 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 Together |
| Strength | Very Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Walmart vs. Bolsas y Mercados
Performance |
| Timeline |
| Walmart |
| Bolsas y Mercados |
Walmart and Bolsas Y Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walmart and Bolsas Y
The main advantage of trading using opposite Walmart and Bolsas Y positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walmart position performs unexpectedly, Bolsas Y 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 Bolsas Y will offset losses from the drop in Bolsas Y's long position.| Walmart vs. Compania de Transporte | Walmart vs. Agrometal SAI | Walmart vs. Harmony Gold Mining | Walmart vs. Telecom Argentina |
| Bolsas Y vs. Harmony Gold Mining | Bolsas Y vs. Compania de Transporte | Bolsas Y vs. United States Steel | Bolsas Y vs. Agrometal SAI |
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.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |