Correlation Between Walmart and Regulus Resources
Can any of the company-specific risk be diversified away by investing in both Walmart and Regulus Resources 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 Regulus Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walmart and Regulus Resources, you can compare the effects of market volatilities on Walmart and Regulus Resources 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 Regulus Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walmart and Regulus Resources.
Diversification Opportunities for Walmart and Regulus Resources
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Walmart and Regulus is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Walmart and Regulus Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Regulus Resources 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 Regulus Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Regulus Resources has no effect on the direction of Walmart i.e., Walmart and Regulus Resources go up and down completely randomly.
Pair Corralation between Walmart and Regulus Resources
Considering the 90-day investment horizon Walmart is expected to generate 0.64 times more return on investment than Regulus Resources. However, Walmart is 1.57 times less risky than Regulus Resources. It trades about 0.39 of its potential returns per unit of risk. Regulus Resources is currently generating about -0.15 per unit of risk. If you would invest 8,275 in Walmart on August 29, 2024 and sell it today you would earn a total of 856.00 from holding Walmart or generate 10.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Walmart vs. Regulus Resources
Performance |
| Timeline |
| Walmart |
| Regulus Resources |
Walmart and Regulus Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walmart and Regulus Resources
The main advantage of trading using opposite Walmart and Regulus Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walmart position performs unexpectedly, Regulus Resources 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 Regulus Resources will offset losses from the drop in Regulus Resources' long position.| Walmart vs. Costco Wholesale Corp | Walmart vs. Dollar Tree | Walmart vs. BJs Wholesale Club | Walmart vs. Target |
| Regulus Resources vs. Silver Hammer Mining | Regulus Resources vs. Reyna Silver Corp | Regulus Resources vs. Guanajuato Silver | Regulus Resources vs. Silver One Resources |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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