Correlation Between Walmart and Oppenheimer Emerging
Can any of the company-specific risk be diversified away by investing in both Walmart and Oppenheimer Emerging 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 Oppenheimer Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walmart and Oppenheimer Emerging Markets, you can compare the effects of market volatilities on Walmart and Oppenheimer Emerging 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 Oppenheimer Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walmart and Oppenheimer Emerging.
Diversification Opportunities for Walmart and Oppenheimer Emerging
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Walmart and Oppenheimer is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Walmart and Oppenheimer Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oppenheimer Emerging 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 Oppenheimer Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oppenheimer Emerging has no effect on the direction of Walmart i.e., Walmart and Oppenheimer Emerging go up and down completely randomly.
Pair Corralation between Walmart and Oppenheimer Emerging
Considering the 90-day investment horizon Walmart is expected to generate 1.35 times more return on investment than Oppenheimer Emerging. However, Walmart is 1.35 times more volatile than Oppenheimer Emerging Markets. It trades about 0.13 of its potential returns per unit of risk. Oppenheimer Emerging Markets is currently generating about 0.02 per unit of risk. If you would invest 4,725 in Walmart on August 30, 2024 and sell it today you would earn a total of 4,463 from holding Walmart or generate 94.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 28.48% |
| Values | Daily Returns |
Walmart vs. Oppenheimer Emerging Markets
Performance |
| Timeline |
| Walmart |
| Oppenheimer Emerging |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Walmart and Oppenheimer Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walmart and Oppenheimer Emerging
The main advantage of trading using opposite Walmart and Oppenheimer Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walmart position performs unexpectedly, Oppenheimer Emerging 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 Oppenheimer Emerging will offset losses from the drop in Oppenheimer Emerging's long position.| Walmart vs. Costco Wholesale Corp | Walmart vs. Dollar Tree | Walmart vs. BJs Wholesale Club | Walmart vs. Target |
| Oppenheimer Emerging vs. Alternative Asset Allocation | Oppenheimer Emerging vs. Enhanced Large Pany | Oppenheimer Emerging vs. Tax Managed Large Cap | Oppenheimer Emerging vs. Upright Assets Allocation |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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