Correlation Between Walmart and Canadian General
Can any of the company-specific risk be diversified away by investing in both Walmart and Canadian General 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 Canadian General 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 Canadian General Investments, you can compare the effects of market volatilities on Walmart and Canadian General 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 Canadian General. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walmart and Canadian General.
Diversification Opportunities for Walmart and Canadian General
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Walmart and Canadian is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Walmart Inc CDR and Canadian General Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canadian General Inv 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 Canadian General. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canadian General Inv has no effect on the direction of Walmart i.e., Walmart and Canadian General go up and down completely randomly.
Pair Corralation between Walmart and Canadian General
Assuming the 90 days trading horizon Walmart Inc CDR is expected to generate 1.31 times more return on investment than Canadian General. However, Walmart is 1.31 times more volatile than Canadian General Investments. It trades about 0.51 of its potential returns per unit of risk. Canadian General Investments is currently generating about 0.12 per unit of risk. If you would invest 3,589 in Walmart Inc CDR on September 5, 2024 and sell it today you would earn a total of 479.00 from holding Walmart Inc CDR or generate 13.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Walmart Inc CDR vs. Canadian General Investments
Performance |
| Timeline |
| Walmart Inc CDR |
| Canadian General Inv |
Walmart and Canadian General Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walmart and Canadian General
The main advantage of trading using opposite Walmart and Canadian General positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walmart position performs unexpectedly, Canadian General 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 Canadian General will offset losses from the drop in Canadian General's long position.| Walmart vs. Converge Technology Solutions | Walmart vs. Western Investment | Walmart vs. Renoworks Software | Walmart vs. Algoma Steel Group |
| Canadian General vs. Uniteds Limited | Canadian General vs. Economic Investment Trust | Canadian General vs. Clairvest Group |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |