Correlation Between Walmart and LIV Capital
Can any of the company-specific risk be diversified away by investing in both Walmart and LIV Capital 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 LIV Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walmart and LIV Capital Acquisition, you can compare the effects of market volatilities on Walmart and LIV Capital 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 LIV Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walmart and LIV Capital.
Diversification Opportunities for Walmart and LIV Capital
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Walmart and LIV is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Walmart and LIV Capital Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LIV Capital Acquisition 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 LIV Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LIV Capital Acquisition has no effect on the direction of Walmart i.e., Walmart and LIV Capital go up and down completely randomly.
Pair Corralation between Walmart and LIV Capital
If you would invest 5,946 in Walmart on September 1, 2024 and sell it today you would earn a total of 3,304 from holding Walmart or generate 55.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 0.53% |
| Values | Daily Returns |
Walmart vs. LIV Capital Acquisition
Performance |
| Timeline |
| Walmart |
| LIV Capital Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Walmart and LIV Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walmart and LIV Capital
The main advantage of trading using opposite Walmart and LIV Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walmart position performs unexpectedly, LIV Capital 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 LIV Capital will offset losses from the drop in LIV Capital's long position.| Walmart vs. Ingles Markets Incorporated | Walmart vs. Grocery Outlet Holding | Walmart vs. Ocado Group plc | Walmart vs. Sprouts Farmers Market |
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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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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