Correlation Between Walmart and Virtus Global
Can any of the company-specific risk be diversified away by investing in both Walmart and Virtus Global 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 Virtus Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walmart and Virtus Global Opportunities, you can compare the effects of market volatilities on Walmart and Virtus Global 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 Virtus Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walmart and Virtus Global.
Diversification Opportunities for Walmart and Virtus Global
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Walmart and Virtus is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Walmart and Virtus Global Opportunities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Virtus Global Opport 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 Virtus Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Virtus Global Opport has no effect on the direction of Walmart i.e., Walmart and Virtus Global go up and down completely randomly.
Pair Corralation between Walmart and Virtus Global
If you would invest 8,219 in Walmart on September 2, 2024 and sell it today you would earn a total of 1,031 from holding Walmart or generate 12.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 4.76% |
| Values | Daily Returns |
Walmart vs. Virtus Global Opportunities
Performance |
| Timeline |
| Walmart |
| Virtus Global Opport |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Walmart and Virtus Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walmart and Virtus Global
The main advantage of trading using opposite Walmart and Virtus Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walmart position performs unexpectedly, Virtus Global 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 Virtus Global will offset losses from the drop in Virtus Global's long position.| Walmart vs. Costco Wholesale Corp | Walmart vs. Dollar Tree | Walmart vs. BJs Wholesale Club | Walmart vs. Target |
| Virtus Global vs. Virtus Kar Capital | Virtus Global vs. Virtus Rampart Enhanced | Virtus Global vs. Virtus Kar Mid Cap | Virtus Global vs. Virtus Tactical Allocation |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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