Correlation Between Walmart and Erytech Pharma
Can any of the company-specific risk be diversified away by investing in both Walmart and Erytech Pharma 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 Erytech Pharma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walmart and Erytech Pharma SA, you can compare the effects of market volatilities on Walmart and Erytech Pharma 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 Erytech Pharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walmart and Erytech Pharma.
Diversification Opportunities for Walmart and Erytech Pharma
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Walmart and Erytech is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Walmart and Erytech Pharma SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Erytech Pharma SA 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 Erytech Pharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Erytech Pharma SA has no effect on the direction of Walmart i.e., Walmart and Erytech Pharma go up and down completely randomly.
Pair Corralation between Walmart and Erytech Pharma
If you would invest 7,608 in Walmart on August 28, 2024 and sell it today you would earn a total of 1,523 from holding Walmart or generate 20.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 1.56% |
| Values | Daily Returns |
Walmart vs. Erytech Pharma SA
Performance |
| Timeline |
| Walmart |
| Erytech Pharma SA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Walmart and Erytech Pharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walmart and Erytech Pharma
The main advantage of trading using opposite Walmart and Erytech Pharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walmart position performs unexpectedly, Erytech Pharma 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 Erytech Pharma will offset losses from the drop in Erytech Pharma's long position.| Walmart vs. Costco Wholesale Corp | Walmart vs. Dollar Tree | Walmart vs. BJs Wholesale Club | Walmart vs. Target |
| Erytech Pharma vs. Genfit | Erytech Pharma vs. Eliem Therapeutics | Erytech Pharma vs. HCW Biologics | Erytech Pharma vs. Aptorum Group Ltd |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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