Correlation Between Walmart and BRAGG GAMING
Can any of the company-specific risk be diversified away by investing in both Walmart and BRAGG GAMING 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 BRAGG GAMING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walmart and BRAGG GAMING GRP, you can compare the effects of market volatilities on Walmart and BRAGG GAMING 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 BRAGG GAMING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walmart and BRAGG GAMING.
Diversification Opportunities for Walmart and BRAGG GAMING
-0.85 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Walmart and BRAGG is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding Walmart and BRAGG GAMING GRP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BRAGG GAMING GRP 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 BRAGG GAMING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BRAGG GAMING GRP has no effect on the direction of Walmart i.e., Walmart and BRAGG GAMING go up and down completely randomly.
Pair Corralation between Walmart and BRAGG GAMING
Assuming the 90 days horizon Walmart is expected to generate 0.32 times more return on investment than BRAGG GAMING. However, Walmart is 3.09 times less risky than BRAGG GAMING. It trades about 0.13 of its potential returns per unit of risk. BRAGG GAMING GRP is currently generating about 0.02 per unit of risk. If you would invest 4,311 in Walmart on October 7, 2024 and sell it today you would earn a total of 4,525 from holding Walmart or generate 104.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Walmart vs. BRAGG GAMING GRP
Performance |
| Timeline |
| Walmart |
| BRAGG GAMING GRP |
Walmart and BRAGG GAMING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walmart and BRAGG GAMING
The main advantage of trading using opposite Walmart and BRAGG GAMING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walmart position performs unexpectedly, BRAGG GAMING 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 BRAGG GAMING will offset losses from the drop in BRAGG GAMING's long position.| Walmart vs. PURETECH HEALTH PLC | Walmart vs. Jacquet Metal Service | Walmart vs. Cardinal Health | Walmart vs. Perseus Mining Limited |
| BRAGG GAMING vs. Renesas Electronics | BRAGG GAMING vs. SCANSOURCE | BRAGG GAMING vs. Arrow Electronics | BRAGG GAMING vs. Xinhua Winshare Publishing |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |