Correlation Between Walmart and IShares MSCI
Can any of the company-specific risk be diversified away by investing in both Walmart and IShares MSCI 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 IShares MSCI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walmart and iShares MSCI Netherlands, you can compare the effects of market volatilities on Walmart and IShares MSCI 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 IShares MSCI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walmart and IShares MSCI.
Diversification Opportunities for Walmart and IShares MSCI
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Walmart and IShares is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Walmart and iShares MSCI Netherlands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares MSCI Netherlands 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 IShares MSCI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares MSCI Netherlands has no effect on the direction of Walmart i.e., Walmart and IShares MSCI go up and down completely randomly.
Pair Corralation between Walmart and IShares MSCI
Considering the 90-day investment horizon Walmart is expected to generate 0.92 times more return on investment than IShares MSCI. However, Walmart is 1.08 times less risky than IShares MSCI. It trades about 0.15 of its potential returns per unit of risk. iShares MSCI Netherlands is currently generating about 0.03 per unit of risk. If you would invest 5,014 in Walmart on August 31, 2024 and sell it today you would earn a total of 4,174 from holding Walmart or generate 83.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Walmart vs. iShares MSCI Netherlands
Performance |
| Timeline |
| Walmart |
| iShares MSCI Netherlands |
Walmart and IShares MSCI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walmart and IShares MSCI
The main advantage of trading using opposite Walmart and IShares MSCI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walmart position performs unexpectedly, IShares MSCI 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 IShares MSCI will offset losses from the drop in IShares MSCI's long position.| Walmart vs. Dollar General | Walmart vs. Aquagold International | Walmart vs. Thrivent High Yield | Walmart vs. Morningstar Unconstrained Allocation |
| IShares MSCI vs. HUMANA INC | IShares MSCI vs. SCOR PK | IShares MSCI vs. Aquagold International | IShares MSCI vs. Ab Pennsylvania Portfolio |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Stocks Directory Find actively traded stocks across global markets |