Correlation Between Walmart and Maritime Resources
Can any of the company-specific risk be diversified away by investing in both Walmart and Maritime Resources 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 Maritime Resources 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 Maritime Resources Corp, you can compare the effects of market volatilities on Walmart and Maritime Resources 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 Maritime Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walmart and Maritime Resources.
Diversification Opportunities for Walmart and Maritime Resources
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Walmart and Maritime is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Walmart Inc CDR and Maritime Resources Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maritime Resources 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 Maritime Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maritime Resources Corp has no effect on the direction of Walmart i.e., Walmart and Maritime Resources go up and down completely randomly.
Pair Corralation between Walmart and Maritime Resources
Assuming the 90 days trading horizon Walmart Inc CDR is expected to generate 0.18 times more return on investment than Maritime Resources. However, Walmart Inc CDR is 5.49 times less risky than Maritime Resources. It trades about 0.49 of its potential returns per unit of risk. Maritime Resources Corp is currently generating about 0.03 per unit of risk. If you would invest 3,557 in Walmart Inc CDR on August 30, 2024 and sell it today you would earn a total of 439.00 from holding Walmart Inc CDR or generate 12.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Walmart Inc CDR vs. Maritime Resources Corp
Performance |
| Timeline |
| Walmart Inc CDR |
| Maritime Resources Corp |
Walmart and Maritime Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walmart and Maritime Resources
The main advantage of trading using opposite Walmart and Maritime Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walmart position performs unexpectedly, Maritime Resources 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 Maritime Resources will offset losses from the drop in Maritime Resources' long position.| Walmart vs. Alaska Energy Metals | Walmart vs. Chatham Rock Phosphate | Walmart vs. Elixxer | Walmart vs. Cielo Waste Solutions |
| Maritime Resources vs. Kesselrun Resources | Maritime Resources vs. Tristar Gold | Maritime Resources vs. Cartier Resources | Maritime Resources vs. Independence Gold Corp |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |