Correlation Between Walmart and Angel Oak
Can any of the company-specific risk be diversified away by investing in both Walmart and Angel Oak 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 Angel Oak into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walmart and Angel Oak Core, you can compare the effects of market volatilities on Walmart and Angel Oak 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 Angel Oak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walmart and Angel Oak.
Diversification Opportunities for Walmart and Angel Oak
Excellent diversification
The 3 months correlation between Walmart and Angel is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Walmart and Angel Oak Core in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Angel Oak Core 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 Angel Oak. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Angel Oak Core has no effect on the direction of Walmart i.e., Walmart and Angel Oak go up and down completely randomly.
Pair Corralation between Walmart and Angel Oak
If you would invest 8,060 in Walmart on September 13, 2024 and sell it today you would earn a total of 1,436 from holding Walmart or generate 17.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 1.59% |
| Values | Daily Returns |
Walmart vs. Angel Oak Core
Performance |
| Timeline |
| Walmart |
| Angel Oak Core |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Walmart and Angel Oak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walmart and Angel Oak
The main advantage of trading using opposite Walmart and Angel Oak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walmart position performs unexpectedly, Angel Oak 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 Angel Oak will offset losses from the drop in Angel Oak's long position.| Walmart vs. Costco Wholesale Corp | Walmart vs. Dollar Tree | Walmart vs. BJs Wholesale Club | Walmart vs. Target |
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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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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