Correlation Between Walmart and Gentera SAB
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By analyzing existing cross correlation between Walmart and Gentera SAB de, you can compare the effects of market volatilities on Walmart and Gentera SAB 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 Gentera SAB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walmart and Gentera SAB.
Diversification Opportunities for Walmart and Gentera SAB
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Walmart and Gentera is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Walmart and Gentera SAB de in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gentera SAB de 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 Gentera SAB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gentera SAB de has no effect on the direction of Walmart i.e., Walmart and Gentera SAB go up and down completely randomly.
Pair Corralation between Walmart and Gentera SAB
Assuming the 90 days trading horizon Walmart is expected to generate 0.58 times more return on investment than Gentera SAB. However, Walmart is 1.72 times less risky than Gentera SAB. It trades about 0.14 of its potential returns per unit of risk. Gentera SAB de is currently generating about 0.04 per unit of risk. If you would invest 86,792 in Walmart on September 1, 2024 and sell it today you would earn a total of 102,508 from holding Walmart or generate 118.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Walmart vs. Gentera SAB de
Performance |
| Timeline |
| Walmart |
| Gentera SAB de |
Walmart and Gentera SAB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walmart and Gentera SAB
The main advantage of trading using opposite Walmart and Gentera SAB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walmart position performs unexpectedly, Gentera SAB 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 Gentera SAB will offset losses from the drop in Gentera SAB's long position.| Walmart vs. Verizon Communications | Walmart vs. United Airlines Holdings | Walmart vs. Deutsche Bank Aktiengesellschaft | Walmart vs. Martin Marietta Materials |
| Gentera SAB vs. Grupo Financiero Inbursa | Gentera SAB vs. Promotora y Operadora | Gentera SAB vs. ALPEK SAB de | Gentera SAB vs. Grupo Financiero Banorte |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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