Correlation Between Walmart and Tidal Trust
Can any of the company-specific risk be diversified away by investing in both Walmart and Tidal Trust 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 Tidal Trust into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walmart and Tidal Trust II, you can compare the effects of market volatilities on Walmart and Tidal Trust 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 Tidal Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walmart and Tidal Trust.
Diversification Opportunities for Walmart and Tidal Trust
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Walmart and Tidal is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Walmart and Tidal Trust II in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tidal Trust II 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 Tidal Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tidal Trust II has no effect on the direction of Walmart i.e., Walmart and Tidal Trust go up and down completely randomly.
Pair Corralation between Walmart and Tidal Trust
Considering the 90-day investment horizon Walmart is expected to generate 0.65 times more return on investment than Tidal Trust. However, Walmart is 1.54 times less risky than Tidal Trust. It trades about 0.4 of its potential returns per unit of risk. Tidal Trust II is currently generating about -0.07 per unit of risk. 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 | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Walmart vs. Tidal Trust II
Performance |
| Timeline |
| Walmart |
| Tidal Trust II |
Walmart and Tidal Trust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walmart and Tidal Trust
The main advantage of trading using opposite Walmart and Tidal Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walmart position performs unexpectedly, Tidal Trust 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 Tidal Trust will offset losses from the drop in Tidal Trust's long position.| Walmart vs. Costco Wholesale Corp | Walmart vs. Dollar Tree | Walmart vs. BJs Wholesale Club | Walmart vs. Target |
| Tidal Trust vs. Tidal Trust II | Tidal Trust vs. First Trust Dorsey | Tidal Trust vs. Direxion Daily META | Tidal Trust vs. Direxion Daily META |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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