Correlation Between Walmart and Augmedix
Can any of the company-specific risk be diversified away by investing in both Walmart and Augmedix 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 Augmedix into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walmart and Augmedix, you can compare the effects of market volatilities on Walmart and Augmedix 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 Augmedix. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walmart and Augmedix.
Diversification Opportunities for Walmart and Augmedix
Very weak diversification
The 3 months correlation between Walmart and Augmedix is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Walmart and Augmedix in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Augmedix 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 Augmedix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Augmedix has no effect on the direction of Walmart i.e., Walmart and Augmedix go up and down completely randomly.
Pair Corralation between Walmart and Augmedix
If you would invest 8,195 in Walmart on September 1, 2024 and sell it today you would earn a total of 1,055 from holding Walmart or generate 12.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Walmart vs. Augmedix
Performance |
| Timeline |
| Walmart |
| Augmedix |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
Walmart and Augmedix Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walmart and Augmedix
The main advantage of trading using opposite Walmart and Augmedix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walmart position performs unexpectedly, Augmedix 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 Augmedix will offset losses from the drop in Augmedix's long position.| Walmart vs. Ingles Markets Incorporated | Walmart vs. Grocery Outlet Holding | Walmart vs. Ocado Group plc | Walmart vs. Sprouts Farmers Market |
| Augmedix vs. In8bio Inc | Augmedix vs. Dermata Therapeutics | Augmedix vs. Elevation Oncology | Augmedix vs. Aclarion |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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