Correlation Between Walmart and Boat Rocker
Can any of the company-specific risk be diversified away by investing in both Walmart and Boat Rocker 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 Boat Rocker into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walmart Inc CDR and Boat Rocker Media, you can compare the effects of market volatilities on Walmart and Boat Rocker 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 Boat Rocker. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walmart and Boat Rocker.
Diversification Opportunities for Walmart and Boat Rocker
-0.85 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Walmart and Boat is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding Walmart Inc CDR and Boat Rocker Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boat Rocker Media 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 Inc CDR are associated (or correlated) with Boat Rocker. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Boat Rocker Media has no effect on the direction of Walmart i.e., Walmart and Boat Rocker go up and down completely randomly.
Pair Corralation between Walmart and Boat Rocker
Assuming the 90 days trading horizon Walmart Inc CDR is expected to generate 0.17 times more return on investment than Boat Rocker. However, Walmart Inc CDR is 5.8 times less risky than Boat Rocker. It trades about 0.5 of its potential returns per unit of risk. Boat Rocker Media is currently generating about -0.17 per unit of risk. If you would invest 3,578 in Walmart Inc CDR on September 2, 2024 and sell it today you would earn a total of 459.00 from holding Walmart Inc CDR or generate 12.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Walmart Inc CDR vs. Boat Rocker Media
Performance |
| Timeline |
| Walmart Inc CDR |
| Boat Rocker Media |
Walmart and Boat Rocker Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walmart and Boat Rocker
The main advantage of trading using opposite Walmart and Boat Rocker positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walmart position performs unexpectedly, Boat Rocker 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 Boat Rocker will offset losses from the drop in Boat Rocker's long position.| Walmart vs. Amazon CDR | Walmart vs. Berkshire Hathaway CDR | Walmart vs. UnitedHealth Group CDR | Walmart vs. Apple Inc CDR |
| Boat Rocker vs. Thunderbird Entertainment Group | Boat Rocker vs. VerticalScope Holdings | Boat Rocker vs. WildBrain | Boat Rocker vs. Kits Eyecare |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |