Correlation Between Walmart and Lightspeed Commerce
Can any of the company-specific risk be diversified away by investing in both Walmart and Lightspeed Commerce 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 Lightspeed Commerce 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 Lightspeed Commerce, you can compare the effects of market volatilities on Walmart and Lightspeed Commerce 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 Lightspeed Commerce. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walmart and Lightspeed Commerce.
Diversification Opportunities for Walmart and Lightspeed Commerce
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Walmart and Lightspeed is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Walmart Inc CDR and Lightspeed Commerce in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lightspeed Commerce 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 Lightspeed Commerce. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lightspeed Commerce has no effect on the direction of Walmart i.e., Walmart and Lightspeed Commerce go up and down completely randomly.
Pair Corralation between Walmart and Lightspeed Commerce
Assuming the 90 days trading horizon Walmart Inc CDR is expected to generate 0.63 times more return on investment than Lightspeed Commerce. However, Walmart Inc CDR is 1.58 times less risky than Lightspeed Commerce. It trades about -0.01 of its potential returns per unit of risk. Lightspeed Commerce is currently generating about -0.16 per unit of risk. If you would invest 4,219 in Walmart Inc CDR on November 29, 2024 and sell it today you would lose (32.00) from holding Walmart Inc CDR or give up 0.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Walmart Inc CDR vs. Lightspeed Commerce
Performance |
| Timeline |
| Walmart Inc CDR |
| Lightspeed Commerce |
Walmart and Lightspeed Commerce Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walmart and Lightspeed Commerce
The main advantage of trading using opposite Walmart and Lightspeed Commerce positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walmart position performs unexpectedly, Lightspeed Commerce 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 Lightspeed Commerce will offset losses from the drop in Lightspeed Commerce's long position.| Walmart vs. Westshore Terminals Investment | Walmart vs. Champion Gaming Group | Walmart vs. Economic Investment Trust | Walmart vs. Farstarcap Investment Corp |
| Lightspeed Commerce vs. Shopify | Lightspeed Commerce vs. WELL Health Technologies | Lightspeed Commerce vs. BlackBerry | Lightspeed Commerce vs. Docebo Inc |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |