Correlation Between Walmart and RPT Realty
Can any of the company-specific risk be diversified away by investing in both Walmart and RPT Realty 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 RPT Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walmart and RPT Realty, you can compare the effects of market volatilities on Walmart and RPT Realty 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 RPT Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walmart and RPT Realty.
Diversification Opportunities for Walmart and RPT Realty
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Walmart and RPT is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Walmart and RPT Realty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RPT Realty 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 RPT Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RPT Realty has no effect on the direction of Walmart i.e., Walmart and RPT Realty go up and down completely randomly.
Pair Corralation between Walmart and RPT Realty
If you would invest 8,139 in Walmart on August 31, 2024 and sell it today you would earn a total of 1,049 from holding Walmart or generate 12.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 4.55% |
| Values | Daily Returns |
Walmart vs. RPT Realty
Performance |
| Timeline |
| Walmart |
| RPT Realty |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Walmart and RPT Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walmart and RPT Realty
The main advantage of trading using opposite Walmart and RPT Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walmart position performs unexpectedly, RPT Realty 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 RPT Realty will offset losses from the drop in RPT Realty's long position.| Walmart vs. Dollar General | Walmart vs. Aquagold International | Walmart vs. Thrivent High Yield | Walmart vs. Morningstar Unconstrained Allocation |
| RPT Realty vs. Urban Edge Properties | RPT Realty vs. Kite Realty Group | RPT Realty vs. Retail Opportunity Investments | RPT Realty vs. Inventrust Properties 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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