Correlation Between Walmart and Dividend
Can any of the company-specific risk be diversified away by investing in both Walmart and Dividend 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 Dividend 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 Dividend 15 Split, you can compare the effects of market volatilities on Walmart and Dividend 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 Dividend. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walmart and Dividend.
Diversification Opportunities for Walmart and Dividend
Very poor diversification
The 3 months correlation between Walmart and Dividend is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Walmart Inc CDR and Dividend 15 Split in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dividend 15 Split 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 Dividend. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dividend 15 Split has no effect on the direction of Walmart i.e., Walmart and Dividend go up and down completely randomly.
Pair Corralation between Walmart and Dividend
Assuming the 90 days trading horizon Walmart Inc CDR is expected to generate 4.02 times more return on investment than Dividend. However, Walmart is 4.02 times more volatile than Dividend 15 Split. It trades about 0.13 of its potential returns per unit of risk. Dividend 15 Split is currently generating about 0.17 per unit of risk. If you would invest 2,143 in Walmart Inc CDR on September 3, 2024 and sell it today you would earn a total of 1,894 from holding Walmart Inc CDR or generate 88.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Walmart Inc CDR vs. Dividend 15 Split
Performance |
| Timeline |
| Walmart Inc CDR |
| Dividend 15 Split |
Walmart and Dividend Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walmart and Dividend
The main advantage of trading using opposite Walmart and Dividend positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walmart position performs unexpectedly, Dividend 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 Dividend will offset losses from the drop in Dividend's long position.| Walmart vs. Xtract One Technologies | Walmart vs. Enduro Metals Corp | Walmart vs. Wishpond Technologies | Walmart vs. Arbor Metals Corp |
| Dividend vs. GOLDMAN SACHS CDR | Dividend vs. Galaxy Digital Holdings | Dividend vs. Hut 8 Mining | Dividend vs. Bitfarms |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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