Correlation Between Walmart and Liberty Gold
Can any of the company-specific risk be diversified away by investing in both Walmart and Liberty Gold 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 Liberty Gold 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 Liberty Gold Corp, you can compare the effects of market volatilities on Walmart and Liberty Gold 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 Liberty Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walmart and Liberty Gold.
Diversification Opportunities for Walmart and Liberty Gold
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Walmart and Liberty is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Walmart Inc CDR and Liberty Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Liberty Gold 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 Liberty Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Liberty Gold Corp has no effect on the direction of Walmart i.e., Walmart and Liberty Gold go up and down completely randomly.
Pair Corralation between Walmart and Liberty Gold
Assuming the 90 days trading horizon Walmart Inc CDR is expected to generate 0.22 times more return on investment than Liberty Gold. However, Walmart Inc CDR is 4.65 times less risky than Liberty Gold. It trades about 0.35 of its potential returns per unit of risk. Liberty Gold Corp is currently generating about -0.11 per unit of risk. If you would invest 3,617 in Walmart Inc CDR on August 25, 2024 and sell it today you would earn a total of 318.00 from holding Walmart Inc CDR or generate 8.79% 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. Liberty Gold Corp
Performance |
| Timeline |
| Walmart Inc CDR |
| Liberty Gold Corp |
Walmart and Liberty Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walmart and Liberty Gold
The main advantage of trading using opposite Walmart and Liberty Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walmart position performs unexpectedly, Liberty Gold 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 Liberty Gold will offset losses from the drop in Liberty Gold's long position.| Walmart vs. Chatham Rock Phosphate | Walmart vs. Alaska Energy Metals | Walmart vs. Elixxer | Walmart vs. Cielo Waste Solutions |
| Liberty Gold vs. GoGold Resources | Liberty Gold vs. Maple Gold Mines | Liberty Gold vs. Aurion Resources | Liberty Gold vs. Minaurum Gold |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |