Correlation Between Walmart and PNE AG
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By analyzing existing cross correlation between Walmart and PNE AG, you can compare the effects of market volatilities on Walmart and PNE AG 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 PNE AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walmart and PNE AG.
Diversification Opportunities for Walmart and PNE AG
Excellent diversification
The 3 months correlation between Walmart and PNE is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Walmart and PNE AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PNE AG 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 are associated (or correlated) with PNE AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PNE AG has no effect on the direction of Walmart i.e., Walmart and PNE AG go up and down completely randomly.
Pair Corralation between Walmart and PNE AG
Assuming the 90 days trading horizon Walmart is expected to generate 1.31 times more return on investment than PNE AG. However, Walmart is 1.31 times more volatile than PNE AG. It trades about 0.53 of its potential returns per unit of risk. PNE AG is currently generating about -0.17 per unit of risk. If you would invest 7,567 in Walmart on September 3, 2024 and sell it today you would earn a total of 1,169 from holding Walmart or generate 15.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Walmart vs. PNE AG
Performance |
| Timeline |
| Walmart |
| PNE AG |
Walmart and PNE AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walmart and PNE AG
The main advantage of trading using opposite Walmart and PNE AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walmart position performs unexpectedly, PNE AG 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 PNE AG will offset losses from the drop in PNE AG's long position.| Walmart vs. Silicon Motion Technology | Walmart vs. Soken Chemical Engineering | Walmart vs. National Beverage Corp | Walmart vs. Tsingtao Brewery |
| PNE AG vs. FARO Technologies | PNE AG vs. Virtus Investment Partners | PNE AG vs. Gladstone Investment | PNE AG vs. REINET INVESTMENTS SCA |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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