Correlation Between Walmart and AB Active
Can any of the company-specific risk be diversified away by investing in both Walmart and AB Active 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 AB Active into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walmart and AB Active ETFs,, you can compare the effects of market volatilities on Walmart and AB Active 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 AB Active. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walmart and AB Active.
Diversification Opportunities for Walmart and AB Active
Excellent diversification
The 3 months correlation between Walmart and ILOW is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Walmart and AB Active ETFs, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AB Active ETFs, 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 AB Active. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AB Active ETFs, has no effect on the direction of Walmart i.e., Walmart and AB Active go up and down completely randomly.
Pair Corralation between Walmart and AB Active
Considering the 90-day investment horizon Walmart is expected to generate 1.41 times more return on investment than AB Active. However, Walmart is 1.41 times more volatile than AB Active ETFs,. It trades about 0.25 of its potential returns per unit of risk. AB Active ETFs, is currently generating about 0.02 per unit of risk. If you would invest 6,563 in Walmart on September 1, 2024 and sell it today you would earn a total of 2,687 from holding Walmart or generate 40.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 79.37% |
| Values | Daily Returns |
Walmart vs. AB Active ETFs,
Performance |
| Timeline |
| Walmart |
| AB Active ETFs, |
Walmart and AB Active Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walmart and AB Active
The main advantage of trading using opposite Walmart and AB Active positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walmart position performs unexpectedly, AB Active 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 AB Active will offset losses from the drop in AB Active's long position.| Walmart vs. Ingles Markets Incorporated | Walmart vs. Grocery Outlet Holding | Walmart vs. Ocado Group plc | Walmart vs. Sprouts Farmers Market |
| AB Active vs. iShares ESG Aggregate | AB Active vs. SPDR MSCI Emerging | AB Active vs. Aquagold International | AB Active vs. Thrivent High Yield |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |