Correlation Between Walmart and Till Capital
Can any of the company-specific risk be diversified away by investing in both Walmart and Till Capital 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 Till Capital 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 Till Capital, you can compare the effects of market volatilities on Walmart and Till Capital 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 Till Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walmart and Till Capital.
Diversification Opportunities for Walmart and Till Capital
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Walmart and Till is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Walmart Inc CDR and Till Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Till Capital 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 Till Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Till Capital has no effect on the direction of Walmart i.e., Walmart and Till Capital go up and down completely randomly.
Pair Corralation between Walmart and Till Capital
Assuming the 90 days trading horizon Walmart Inc CDR is expected to generate 0.18 times more return on investment than Till Capital. However, Walmart Inc CDR is 5.58 times less risky than Till Capital. It trades about 0.32 of its potential returns per unit of risk. Till Capital is currently generating about -0.11 per unit of risk. If you would invest 3,605 in Walmart Inc CDR on August 28, 2024 and sell it today you would earn a total of 286.00 from holding Walmart Inc CDR or generate 7.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Walmart Inc CDR vs. Till Capital
Performance |
| Timeline |
| Walmart Inc CDR |
| Till Capital |
Walmart and Till Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walmart and Till Capital
The main advantage of trading using opposite Walmart and Till Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walmart position performs unexpectedly, Till Capital 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 Till Capital will offset losses from the drop in Till Capital's long position.| Walmart vs. Chatham Rock Phosphate | Walmart vs. Alaska Energy Metals | Walmart vs. Elixxer | Walmart vs. Cielo Waste Solutions |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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