Correlation Between Walmart and ROC Energy
Can any of the company-specific risk be diversified away by investing in both Walmart and ROC Energy 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 ROC Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walmart and ROC Energy Acquisition, you can compare the effects of market volatilities on Walmart and ROC Energy 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 ROC Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walmart and ROC Energy.
Diversification Opportunities for Walmart and ROC Energy
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Walmart and ROC is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Walmart and ROC Energy Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ROC Energy 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 ROC Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ROC Energy Acquisition has no effect on the direction of Walmart i.e., Walmart and ROC Energy go up and down completely randomly.
Pair Corralation between Walmart and ROC Energy
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 Against |
| Strength | Significant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Walmart vs. ROC Energy Acquisition
Performance |
| Timeline |
| Walmart |
| ROC Energy Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Walmart and ROC Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walmart and ROC Energy
The main advantage of trading using opposite Walmart and ROC Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walmart position performs unexpectedly, ROC Energy 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 ROC Energy will offset losses from the drop in ROC Energy's long position.| Walmart vs. Costco Wholesale Corp | Walmart vs. Dollar Tree | Walmart vs. BJs Wholesale Club | Walmart vs. Target |
| ROC Energy vs. Canlan Ice Sports | ROC Energy vs. Summa Silver Corp | ROC Energy vs. Harmony Gold Mining | ROC Energy vs. Vindicator Silver Lead Mining |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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