Correlation Between Walmart and Athenex
Can any of the company-specific risk be diversified away by investing in both Walmart and Athenex 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 Athenex into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walmart and Athenex, you can compare the effects of market volatilities on Walmart and Athenex 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 Athenex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walmart and Athenex.
Diversification Opportunities for Walmart and Athenex
Pay attention - limited upside
The 3 months correlation between Walmart and Athenex is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Walmart and Athenex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Athenex 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 Athenex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Athenex has no effect on the direction of Walmart i.e., Walmart and Athenex go up and down completely randomly.
Pair Corralation between Walmart and Athenex
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 | Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Walmart vs. Athenex
Performance |
| Timeline |
| Walmart |
| Athenex |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Walmart and Athenex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walmart and Athenex
The main advantage of trading using opposite Walmart and Athenex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walmart position performs unexpectedly, Athenex 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 Athenex will offset losses from the drop in Athenex'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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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