Correlation Between Walmart and Granite Real
Can any of the company-specific risk be diversified away by investing in both Walmart and Granite Real 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 Granite Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walmart and Granite Real Estate, you can compare the effects of market volatilities on Walmart and Granite Real 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 Granite Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walmart and Granite Real.
Diversification Opportunities for Walmart and Granite Real
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Walmart and Granite is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Walmart and Granite Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Granite Real Estate 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 Granite Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Granite Real Estate has no effect on the direction of Walmart i.e., Walmart and Granite Real go up and down completely randomly.
Pair Corralation between Walmart and Granite Real
Considering the 90-day investment horizon Walmart is expected to generate 0.43 times more return on investment than Granite Real. However, Walmart is 2.3 times less risky than Granite Real. It trades about 0.24 of its potential returns per unit of risk. Granite Real Estate is currently generating about 0.05 per unit of risk. If you would invest 6,641 in Walmart on September 2, 2024 and sell it today you would earn a total of 2,609 from holding Walmart or generate 39.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Walmart vs. Granite Real Estate
Performance |
| Timeline |
| Walmart |
| Granite Real Estate |
Walmart and Granite Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walmart and Granite Real
The main advantage of trading using opposite Walmart and Granite Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walmart position performs unexpectedly, Granite Real 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 Granite Real will offset losses from the drop in Granite Real's long position.| Walmart vs. Costco Wholesale Corp | Walmart vs. Dollar Tree | Walmart vs. BJs Wholesale Club | Walmart vs. Target |
| Granite Real vs. Public Storage | Granite Real vs. Public Storage | Granite Real vs. Public Storage | Granite Real vs. Public Storage |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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