Correlation Between Walmart and Tema ETF
Can any of the company-specific risk be diversified away by investing in both Walmart and Tema ETF 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 Tema ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walmart and Tema ETF Trust, you can compare the effects of market volatilities on Walmart and Tema ETF 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 Tema ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walmart and Tema ETF.
Diversification Opportunities for Walmart and Tema ETF
Very good diversification
The 3 months correlation between Walmart and Tema is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Walmart and Tema ETF Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tema ETF Trust 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 Tema ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tema ETF Trust has no effect on the direction of Walmart i.e., Walmart and Tema ETF go up and down completely randomly.
Pair Corralation between Walmart and Tema ETF
Considering the 90-day investment horizon Walmart is expected to generate 0.78 times more return on investment than Tema ETF. However, Walmart is 1.28 times less risky than Tema ETF. It trades about 0.57 of its potential returns per unit of risk. Tema ETF Trust is currently generating about -0.01 per unit of risk. If you would invest 9,194 in Walmart on November 18, 2024 and sell it today you would earn a total of 1,210 from holding Walmart or generate 13.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Walmart vs. Tema ETF Trust
Performance |
| Timeline |
| Walmart |
| Tema ETF Trust |
Walmart and Tema ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walmart and Tema ETF
The main advantage of trading using opposite Walmart and Tema ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walmart position performs unexpectedly, Tema ETF 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 Tema ETF will offset losses from the drop in Tema ETF's long position.| Walmart vs. BJs Wholesale Club | Walmart vs. Dollar General | Walmart vs. Grocery Outlet Holding | Walmart vs. Kroger Company |
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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 CEOs Directory module to screen CEOs from public companies around the world.
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