Correlation Between Walmart and SPDR Bloomberg
Can any of the company-specific risk be diversified away by investing in both Walmart and SPDR Bloomberg 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 SPDR Bloomberg into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walmart and SPDR Bloomberg International, you can compare the effects of market volatilities on Walmart and SPDR Bloomberg 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 SPDR Bloomberg. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walmart and SPDR Bloomberg.
Diversification Opportunities for Walmart and SPDR Bloomberg
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Walmart and SPDR is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Walmart and SPDR Bloomberg International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR Bloomberg Inter 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 SPDR Bloomberg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR Bloomberg Inter has no effect on the direction of Walmart i.e., Walmart and SPDR Bloomberg go up and down completely randomly.
Pair Corralation between Walmart and SPDR Bloomberg
Considering the 90-day investment horizon Walmart is expected to generate 1.76 times more return on investment than SPDR Bloomberg. However, Walmart is 1.76 times more volatile than SPDR Bloomberg International. It trades about 0.41 of its potential returns per unit of risk. SPDR Bloomberg International is currently generating about -0.18 per unit of risk. If you would invest 8,251 in Walmart on August 26, 2024 and sell it today you would earn a total of 793.00 from holding Walmart or generate 9.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Walmart vs. SPDR Bloomberg International
Performance |
| Timeline |
| Walmart |
| SPDR Bloomberg Inter |
Walmart and SPDR Bloomberg Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walmart and SPDR Bloomberg
The main advantage of trading using opposite Walmart and SPDR Bloomberg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walmart position performs unexpectedly, SPDR Bloomberg 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 SPDR Bloomberg will offset losses from the drop in SPDR Bloomberg's long position.| Walmart vs. Costco Wholesale Corp | Walmart vs. Dollar Tree | Walmart vs. BJs Wholesale Club | Walmart vs. Target |
| SPDR Bloomberg vs. SPDR FTSE International | SPDR Bloomberg vs. Invesco Emerging Markets | SPDR Bloomberg vs. SPDR Bloomberg Short | SPDR Bloomberg vs. iShares 3 7 Year |
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 Valuation module to check real value of public entities based on technical and fundamental data.
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