Correlation Between Walmart and Cassiar Gold
Can any of the company-specific risk be diversified away by investing in both Walmart and Cassiar Gold 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 Cassiar Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walmart and Cassiar Gold Corp, you can compare the effects of market volatilities on Walmart and Cassiar Gold 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 Cassiar Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walmart and Cassiar Gold.
Diversification Opportunities for Walmart and Cassiar Gold
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Walmart and Cassiar is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Walmart and Cassiar Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cassiar Gold Corp 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 Cassiar Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cassiar Gold Corp has no effect on the direction of Walmart i.e., Walmart and Cassiar Gold go up and down completely randomly.
Pair Corralation between Walmart and Cassiar Gold
Considering the 90-day investment horizon Walmart is expected to generate 21.51 times less return on investment than Cassiar Gold. But when comparing it to its historical volatility, Walmart is 2.43 times less risky than Cassiar Gold. It trades about 0.02 of its potential returns per unit of risk. Cassiar Gold Corp is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 14.00 in Cassiar Gold Corp on November 28, 2024 and sell it today you would earn a total of 2.00 from holding Cassiar Gold Corp or generate 14.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Walmart vs. Cassiar Gold Corp
Performance |
| Timeline |
| Walmart |
| Cassiar Gold Corp |
Walmart and Cassiar Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walmart and Cassiar Gold
The main advantage of trading using opposite Walmart and Cassiar Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walmart position performs unexpectedly, Cassiar Gold 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 Cassiar Gold will offset losses from the drop in Cassiar Gold's long position.| Walmart vs. Aquagold International | Walmart vs. Thrivent High Yield | Walmart vs. Morningstar Unconstrained Allocation | Walmart vs. Via Renewables |
| Cassiar Gold vs. Independence Gold Corp | Cassiar Gold vs. Westward Gold | Cassiar Gold vs. Cabral Gold | Cassiar Gold vs. Revival Gold |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |