Correlation Between Walmart and Global Real
Can any of the company-specific risk be diversified away by investing in both Walmart and Global Real 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 Global Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walmart and Global Real Estate, you can compare the effects of market volatilities on Walmart and Global Real 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 Global Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walmart and Global Real.
Diversification Opportunities for Walmart and Global Real
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Walmart and Global is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Walmart and Global Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Real Estate 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 Global Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Real Estate has no effect on the direction of Walmart i.e., Walmart and Global Real go up and down completely randomly.
Pair Corralation between Walmart and Global Real
Considering the 90-day investment horizon Walmart is expected to generate 1.18 times less return on investment than Global Real. In addition to that, Walmart is 1.03 times more volatile than Global Real Estate. It trades about 0.1 of its total potential returns per unit of risk. Global Real Estate is currently generating about 0.12 per unit of volatility. If you would invest 1,290 in Global Real Estate on October 24, 2024 and sell it today you would earn a total of 27.00 from holding Global Real Estate or generate 2.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Walmart vs. Global Real Estate
Performance |
| Timeline |
| Walmart |
| Global Real Estate |
Walmart and Global Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walmart and Global Real
The main advantage of trading using opposite Walmart and Global Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walmart position performs unexpectedly, Global Real 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 Global Real will offset losses from the drop in Global Real's long position.| Walmart vs. Costco Wholesale Corp | Walmart vs. Dollar Tree | Walmart vs. BJs Wholesale Club | Walmart vs. Target |
| Global Real vs. Barings Emerging Markets | Global Real vs. Wcm Focused Emerging | Global Real vs. Eagle Mlp Strategy | Global Real vs. Boston Partners Emerging |
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 CEOs Directory module to screen CEOs from public companies around the world.
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