Correlation Between Walmart and IRSA Inversiones
Can any of the company-specific risk be diversified away by investing in both Walmart and IRSA Inversiones 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 IRSA Inversiones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walmart and IRSA Inversiones y, you can compare the effects of market volatilities on Walmart and IRSA Inversiones 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 IRSA Inversiones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walmart and IRSA Inversiones.
Diversification Opportunities for Walmart and IRSA Inversiones
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Walmart and IRSA is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Walmart and IRSA Inversiones y in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IRSA Inversiones y 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 IRSA Inversiones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IRSA Inversiones y has no effect on the direction of Walmart i.e., Walmart and IRSA Inversiones go up and down completely randomly.
Pair Corralation between Walmart and IRSA Inversiones
Assuming the 90 days trading horizon Walmart is expected to generate 0.35 times more return on investment than IRSA Inversiones. However, Walmart is 2.87 times less risky than IRSA Inversiones. It trades about 0.47 of its potential returns per unit of risk. IRSA Inversiones y is currently generating about -0.02 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 | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Walmart vs. IRSA Inversiones y
Performance |
| Timeline |
| Walmart |
| IRSA Inversiones y |
Walmart and IRSA Inversiones Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walmart and IRSA Inversiones
The main advantage of trading using opposite Walmart and IRSA Inversiones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walmart position performs unexpectedly, IRSA Inversiones 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 IRSA Inversiones will offset losses from the drop in IRSA Inversiones' long position.| Walmart vs. Compania de Transporte | Walmart vs. Agrometal SAI | Walmart vs. Harmony Gold Mining | Walmart vs. Telecom Argentina |
| IRSA Inversiones vs. Agrometal SAI | IRSA Inversiones vs. Harmony Gold Mining | IRSA Inversiones vs. Telecom Argentina | IRSA Inversiones vs. United States Steel |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |