Correlation Between Walmart and Katipult Technology
Can any of the company-specific risk be diversified away by investing in both Walmart and Katipult Technology 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 Katipult Technology 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 Katipult Technology Corp, you can compare the effects of market volatilities on Walmart and Katipult Technology 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 Katipult Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walmart and Katipult Technology.
Diversification Opportunities for Walmart and Katipult Technology
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Walmart and Katipult is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Walmart Inc CDR and Katipult Technology Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Katipult Technology Corp 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 Katipult Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Katipult Technology Corp has no effect on the direction of Walmart i.e., Walmart and Katipult Technology go up and down completely randomly.
Pair Corralation between Walmart and Katipult Technology
Assuming the 90 days trading horizon Walmart is expected to generate 2.83 times less return on investment than Katipult Technology. But when comparing it to its historical volatility, Walmart Inc CDR is 16.91 times less risky than Katipult Technology. It trades about 0.49 of its potential returns per unit of risk. Katipult Technology Corp is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1.50 in Katipult Technology Corp on August 30, 2024 and sell it today you would earn a total of 0.00 from holding Katipult Technology Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Walmart Inc CDR vs. Katipult Technology Corp
Performance |
| Timeline |
| Walmart Inc CDR |
| Katipult Technology Corp |
Walmart and Katipult Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walmart and Katipult Technology
The main advantage of trading using opposite Walmart and Katipult Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walmart position performs unexpectedly, Katipult Technology 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 Katipult Technology will offset losses from the drop in Katipult Technology's long position.| Walmart vs. Nicola Mining | Walmart vs. Northstar Clean Technologies | Walmart vs. North American Construction | Walmart vs. Air Canada |
| Katipult Technology vs. MAG Silver Corp | Katipult Technology vs. Ramp Metals | Katipult Technology vs. Quipt Home Medical | Katipult Technology vs. Perseus Mining |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |