Correlation Between Walmart and 2023 ETF
Can any of the company-specific risk be diversified away by investing in both Walmart and 2023 ETF 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 2023 ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walmart and 2023 ETF Series, you can compare the effects of market volatilities on Walmart and 2023 ETF 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 2023 ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walmart and 2023 ETF.
Diversification Opportunities for Walmart and 2023 ETF
Excellent diversification
The 3 months correlation between Walmart and 2023 is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Walmart and 2023 ETF Series in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 2023 ETF Series 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 2023 ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 2023 ETF Series has no effect on the direction of Walmart i.e., Walmart and 2023 ETF go up and down completely randomly.
Pair Corralation between Walmart and 2023 ETF
Considering the 90-day investment horizon Walmart is expected to generate 1.37 times more return on investment than 2023 ETF. However, Walmart is 1.37 times more volatile than 2023 ETF Series. It trades about 0.13 of its potential returns per unit of risk. 2023 ETF Series is currently generating about 0.1 per unit of risk. If you would invest 4,725 in Walmart on August 30, 2024 and sell it today you would earn a total of 4,463 from holding Walmart or generate 94.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 58.59% |
| Values | Daily Returns |
Walmart vs. 2023 ETF Series
Performance |
| Timeline |
| Walmart |
| 2023 ETF Series |
Walmart and 2023 ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walmart and 2023 ETF
The main advantage of trading using opposite Walmart and 2023 ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walmart position performs unexpectedly, 2023 ETF 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 2023 ETF will offset losses from the drop in 2023 ETF's long position.| Walmart vs. Costco Wholesale Corp | Walmart vs. Dollar Tree | Walmart vs. BJs Wholesale Club | Walmart vs. Target |
| 2023 ETF vs. FT Vest Equity | 2023 ETF vs. Northern Lights | 2023 ETF vs. Dimensional International High | 2023 ETF vs. First Trust Exchange Traded |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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