Correlation Between Walmart and Citrine Global
Can any of the company-specific risk be diversified away by investing in both Walmart and Citrine Global 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 Citrine Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walmart and Citrine Global Corp, you can compare the effects of market volatilities on Walmart and Citrine Global 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 Citrine Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walmart and Citrine Global.
Diversification Opportunities for Walmart and Citrine Global
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Walmart and Citrine is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Walmart and Citrine Global Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citrine Global 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 Citrine Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Citrine Global Corp has no effect on the direction of Walmart i.e., Walmart and Citrine Global go up and down completely randomly.
Pair Corralation between Walmart and Citrine Global
Considering the 90-day investment horizon Walmart is expected to generate 0.13 times more return on investment than Citrine Global. However, Walmart is 7.42 times less risky than Citrine Global. It trades about 0.27 of its potential returns per unit of risk. Citrine Global Corp is currently generating about -0.18 per unit of risk. If you would invest 7,717 in Walmart on September 2, 2024 and sell it today you would earn a total of 1,533 from holding Walmart or generate 19.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.46% |
| Values | Daily Returns |
Walmart vs. Citrine Global Corp
Performance |
| Timeline |
| Walmart |
| Citrine Global Corp |
Walmart and Citrine Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walmart and Citrine Global
The main advantage of trading using opposite Walmart and Citrine Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walmart position performs unexpectedly, Citrine Global 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 Citrine Global will offset losses from the drop in Citrine Global's long position.| Walmart vs. Costco Wholesale Corp | Walmart vs. Dollar Tree | Walmart vs. BJs Wholesale Club | Walmart vs. Target |
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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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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