Correlation Between Walmart and Catcha Investment
Can any of the company-specific risk be diversified away by investing in both Walmart and Catcha Investment 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 Catcha Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walmart and Catcha Investment Corp, you can compare the effects of market volatilities on Walmart and Catcha Investment 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 Catcha Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walmart and Catcha Investment.
Diversification Opportunities for Walmart and Catcha Investment
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Walmart and Catcha is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Walmart and Catcha Investment Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Catcha Investment 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 Catcha Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Catcha Investment Corp has no effect on the direction of Walmart i.e., Walmart and Catcha Investment go up and down completely randomly.
Pair Corralation between Walmart and Catcha Investment
If you would invest 8,275 in Walmart on August 27, 2024 and sell it today you would earn a total of 769.00 from holding Walmart or generate 9.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Walmart vs. Catcha Investment Corp
Performance |
| Timeline |
| Walmart |
| Catcha Investment Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Walmart and Catcha Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walmart and Catcha Investment
The main advantage of trading using opposite Walmart and Catcha Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walmart position performs unexpectedly, Catcha Investment 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 Catcha Investment will offset losses from the drop in Catcha Investment's long position.| Walmart vs. Innovative Food Hldg | Walmart vs. Calavo Growers | Walmart vs. The Chefs Warehouse | Walmart vs. AMCON Distributing |
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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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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