Correlation Between Walmart and Socit Gnrale
Can any of the company-specific risk be diversified away by investing in both Walmart and Socit Gnrale 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 Socit Gnrale into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walmart and Socit Gnrale Socit, you can compare the effects of market volatilities on Walmart and Socit Gnrale 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 Socit Gnrale. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walmart and Socit Gnrale.
Diversification Opportunities for Walmart and Socit Gnrale
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Walmart and Socit is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Walmart and Socit Gnrale Socit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Socit Gnrale Socit 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 Socit Gnrale. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Socit Gnrale Socit has no effect on the direction of Walmart i.e., Walmart and Socit Gnrale go up and down completely randomly.
Pair Corralation between Walmart and Socit Gnrale
Assuming the 90 days horizon Walmart is expected to generate 0.61 times more return on investment than Socit Gnrale. However, Walmart is 1.64 times less risky than Socit Gnrale. It trades about 0.24 of its potential returns per unit of risk. Socit Gnrale Socit is currently generating about -0.02 per unit of risk. If you would invest 5,928 in Walmart on August 29, 2024 and sell it today you would earn a total of 2,772 from holding Walmart or generate 46.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Walmart vs. Socit Gnrale Socit
Performance |
| Timeline |
| Walmart |
| Socit Gnrale Socit |
Walmart and Socit Gnrale Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walmart and Socit Gnrale
The main advantage of trading using opposite Walmart and Socit Gnrale positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walmart position performs unexpectedly, Socit Gnrale 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 Socit Gnrale will offset losses from the drop in Socit Gnrale's long position.| Walmart vs. Tradeweb Markets | Walmart vs. Check Point Software | Walmart vs. Vastned Retail NV | Walmart vs. CPU SOFTWAREHOUSE |
| Socit Gnrale vs. BNP Paribas SA | Socit Gnrale vs. Deutsche Bank Aktiengesellschaft | Socit Gnrale vs. Santander Bank Polska |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |