Correlation Between Walmart and Lundin Gold
Can any of the company-specific risk be diversified away by investing in both Walmart and Lundin Gold 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 Lundin Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walmart and Lundin Gold, you can compare the effects of market volatilities on Walmart and Lundin Gold 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 Lundin Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walmart and Lundin Gold.
Diversification Opportunities for Walmart and Lundin Gold
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Walmart and Lundin is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Walmart and Lundin Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lundin Gold 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 Lundin Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lundin Gold has no effect on the direction of Walmart i.e., Walmart and Lundin Gold go up and down completely randomly.
Pair Corralation between Walmart and Lundin Gold
Considering the 90-day investment horizon Walmart is expected to generate 0.41 times more return on investment than Lundin Gold. However, Walmart is 2.41 times less risky than Lundin Gold. It trades about 0.54 of its potential returns per unit of risk. Lundin Gold is currently generating about -0.08 per unit of risk. If you would invest 8,195 in Walmart on September 1, 2024 and sell it today you would earn a total of 1,055 from holding Walmart or generate 12.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Walmart vs. Lundin Gold
Performance |
| Timeline |
| Walmart |
| Lundin Gold |
Walmart and Lundin Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walmart and Lundin Gold
The main advantage of trading using opposite Walmart and Lundin Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walmart position performs unexpectedly, Lundin Gold 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 Lundin Gold will offset losses from the drop in Lundin Gold's long position.| Walmart vs. Ingles Markets Incorporated | Walmart vs. Grocery Outlet Holding | Walmart vs. Ocado Group plc | Walmart vs. Sprouts Farmers Market |
| Lundin Gold vs. Aurion Resources | Lundin Gold vs. Rio2 Limited | Lundin Gold vs. Palamina Corp | Lundin Gold vs. BTU Metals Corp |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |