Correlation Between Walmart and AGBA Acquisition
Can any of the company-specific risk be diversified away by investing in both Walmart and AGBA Acquisition 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 AGBA Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walmart and AGBA Acquisition Limited, you can compare the effects of market volatilities on Walmart and AGBA Acquisition 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 AGBA Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walmart and AGBA Acquisition.
Diversification Opportunities for Walmart and AGBA Acquisition
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Walmart and AGBA is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Walmart and AGBA Acquisition Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AGBA Acquisition 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 AGBA Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AGBA Acquisition has no effect on the direction of Walmart i.e., Walmart and AGBA Acquisition go up and down completely randomly.
Pair Corralation between Walmart and AGBA Acquisition
If you would invest 8,304 in Walmart on August 25, 2024 and sell it today you would earn a total of 740.00 from holding Walmart or generate 8.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.35% |
| Values | Daily Returns |
Walmart vs. AGBA Acquisition Limited
Performance |
| Timeline |
| Walmart |
| AGBA Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Walmart and AGBA Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walmart and AGBA Acquisition
The main advantage of trading using opposite Walmart and AGBA Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walmart position performs unexpectedly, AGBA Acquisition 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 AGBA Acquisition will offset losses from the drop in AGBA Acquisition's long position.| Walmart vs. Costco Wholesale Corp | Walmart vs. Dollar Tree | Walmart vs. BJs Wholesale Club | Walmart vs. Target |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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