Correlation Between Walmart and Angel Oak
Can any of the company-specific risk be diversified away by investing in both Walmart and Angel Oak 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 Angel Oak into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walmart and Angel Oak Funds, you can compare the effects of market volatilities on Walmart and Angel Oak 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 Angel Oak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walmart and Angel Oak.
Diversification Opportunities for Walmart and Angel Oak
Excellent diversification
The 3 months correlation between Walmart and Angel is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Walmart and Angel Oak Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Angel Oak Funds 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 Angel Oak. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Angel Oak Funds has no effect on the direction of Walmart i.e., Walmart and Angel Oak go up and down completely randomly.
Pair Corralation between Walmart and Angel Oak
Considering the 90-day investment horizon Walmart is expected to generate 3.59 times more return on investment than Angel Oak. However, Walmart is 3.59 times more volatile than Angel Oak Funds. It trades about 0.53 of its potential returns per unit of risk. Angel Oak Funds is currently generating about 0.12 per unit of risk. If you would invest 8,245 in Walmart on September 3, 2024 and sell it today you would earn a total of 1,005 from holding Walmart or generate 12.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Walmart vs. Angel Oak Funds
Performance |
| Timeline |
| Walmart |
| Angel Oak Funds |
Walmart and Angel Oak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walmart and Angel Oak
The main advantage of trading using opposite Walmart and Angel Oak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walmart position performs unexpectedly, Angel Oak 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 Angel Oak will offset losses from the drop in Angel Oak's long position.| Walmart vs. Partner Communications | Walmart vs. Merck Company | Walmart vs. Western Midstream Partners | Walmart vs. Edgewise Therapeutics |
| Angel Oak vs. Valued Advisers Trust | Angel Oak vs. Columbia Diversified Fixed | Angel Oak vs. Principal Exchange Traded Funds | Angel Oak vs. Doubleline Etf Trust |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| 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 | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |