Correlation Between Walmart and Cohen Steers
Can any of the company-specific risk be diversified away by investing in both Walmart and Cohen Steers 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 Cohen Steers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walmart and Cohen Steers Closed, you can compare the effects of market volatilities on Walmart and Cohen Steers 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 Cohen Steers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walmart and Cohen Steers.
Diversification Opportunities for Walmart and Cohen Steers
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Walmart and Cohen is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Walmart and Cohen Steers Closed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohen Steers Closed 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 Cohen Steers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cohen Steers Closed has no effect on the direction of Walmart i.e., Walmart and Cohen Steers go up and down completely randomly.
Pair Corralation between Walmart and Cohen Steers
Considering the 90-day investment horizon Walmart is expected to generate 1.42 times more return on investment than Cohen Steers. However, Walmart is 1.42 times more volatile than Cohen Steers Closed. It trades about 0.24 of its potential returns per unit of risk. Cohen Steers Closed is currently generating about 0.15 per unit of risk. If you would invest 6,563 in Walmart on August 30, 2024 and sell it today you would earn a total of 2,625 from holding Walmart or generate 40.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Walmart vs. Cohen Steers Closed
Performance |
| Timeline |
| Walmart |
| Cohen Steers Closed |
Walmart and Cohen Steers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walmart and Cohen Steers
The main advantage of trading using opposite Walmart and Cohen Steers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walmart position performs unexpectedly, Cohen Steers 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 Cohen Steers will offset losses from the drop in Cohen Steers' long position.| Walmart vs. Weis Markets | Walmart vs. Ingles Markets Incorporated | Walmart vs. Sendas Distribuidora SA | Walmart vs. Village Super Market |
| Cohen Steers vs. Cohen And Steers | Cohen Steers vs. Cohen Steers Total | Cohen Steers vs. Reaves Utility If | Cohen Steers vs. BlackRock Science Tech |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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