Correlation Between Walmart and Callinex Mines
Can any of the company-specific risk be diversified away by investing in both Walmart and Callinex Mines 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 Callinex Mines into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walmart and Callinex Mines, you can compare the effects of market volatilities on Walmart and Callinex Mines 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 Callinex Mines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walmart and Callinex Mines.
Diversification Opportunities for Walmart and Callinex Mines
-0.89 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Walmart and Callinex is -0.89. Overlapping area represents the amount of risk that can be diversified away by holding Walmart and Callinex Mines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Callinex Mines 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 Callinex Mines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Callinex Mines has no effect on the direction of Walmart i.e., Walmart and Callinex Mines go up and down completely randomly.
Pair Corralation between Walmart and Callinex Mines
Considering the 90-day investment horizon Walmart is expected to generate 0.34 times more return on investment than Callinex Mines. However, Walmart is 2.96 times less risky than Callinex Mines. It trades about 0.39 of its potential returns per unit of risk. Callinex Mines is currently generating about -0.21 per unit of risk. If you would invest 9,143 in Walmart on November 5, 2024 and sell it today you would earn a total of 673.00 from holding Walmart or generate 7.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Walmart vs. Callinex Mines
Performance |
| Timeline |
| Walmart |
| Callinex Mines |
Walmart and Callinex Mines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walmart and Callinex Mines
The main advantage of trading using opposite Walmart and Callinex Mines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walmart position performs unexpectedly, Callinex Mines 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 Callinex Mines will offset losses from the drop in Callinex Mines' long position.| Walmart vs. Costco Wholesale Corp | Walmart vs. Dollar Tree | Walmart vs. BJs Wholesale Club | Walmart vs. Target |
| Callinex Mines vs. West Mining Corp | Callinex Mines vs. Flying Nickel Mining | Callinex Mines vs. Forum Energy Metals | Callinex Mines vs. Jourdan Resources |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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