Correlation Between Walmart and Great West
Can any of the company-specific risk be diversified away by investing in both Walmart and Great West 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 Great West 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 Great West Lifeco, you can compare the effects of market volatilities on Walmart and Great West 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 Great West. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walmart and Great West.
Diversification Opportunities for Walmart and Great West
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Walmart and Great is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Walmart Inc CDR and Great West Lifeco in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Great West Lifeco 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 Great West. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Great West Lifeco has no effect on the direction of Walmart i.e., Walmart and Great West go up and down completely randomly.
Pair Corralation between Walmart and Great West
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 | Flat |
| Strength | Insignificant |
| Accuracy | 4.35% |
| Values | Daily Returns |
Walmart Inc CDR vs. Great West Lifeco
Performance |
| Timeline |
| Walmart Inc CDR |
| Great West Lifeco |
Walmart and Great West Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walmart and Great West
The main advantage of trading using opposite Walmart and Great West positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walmart position performs unexpectedly, Great West 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 Great West will offset losses from the drop in Great West's long position.| Walmart vs. Converge Technology Solutions | Walmart vs. Western Investment | Walmart vs. Renoworks Software | Walmart vs. Algoma Steel Group |
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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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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