Correlation Between Walmart and KORE Mining
Can any of the company-specific risk be diversified away by investing in both Walmart and KORE Mining 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 KORE Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walmart and KORE Mining, you can compare the effects of market volatilities on Walmart and KORE Mining 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 KORE Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walmart and KORE Mining.
Diversification Opportunities for Walmart and KORE Mining
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Walmart and KORE is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Walmart and KORE Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KORE Mining 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 KORE Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KORE Mining has no effect on the direction of Walmart i.e., Walmart and KORE Mining go up and down completely randomly.
Pair Corralation between Walmart and KORE Mining
Considering the 90-day investment horizon Walmart is expected to generate 0.11 times more return on investment than KORE Mining. However, Walmart is 8.83 times less risky than KORE Mining. It trades about 0.28 of its potential returns per unit of risk. KORE Mining is currently generating about 0.02 per unit of risk. If you would invest 8,075 in Walmart on August 29, 2024 and sell it today you would earn a total of 1,056 from holding Walmart or generate 13.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Walmart vs. KORE Mining
Performance |
| Timeline |
| Walmart |
| KORE Mining |
Walmart and KORE Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walmart and KORE Mining
The main advantage of trading using opposite Walmart and KORE Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walmart position performs unexpectedly, KORE Mining 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 KORE Mining will offset losses from the drop in KORE Mining's long position.| Walmart vs. Costco Wholesale Corp | Walmart vs. Dollar Tree | Walmart vs. BJs Wholesale Club | Walmart vs. Target |
| KORE Mining vs. Vertiv Holdings Co | KORE Mining vs. Nasdaq Inc | KORE Mining vs. McDonalds | KORE Mining vs. Walmart |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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