Correlation Between Walmart and LifeGoal Investments
Can any of the company-specific risk be diversified away by investing in both Walmart and LifeGoal Investments 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 LifeGoal Investments into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walmart and LifeGoal Investments, you can compare the effects of market volatilities on Walmart and LifeGoal Investments 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 LifeGoal Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walmart and LifeGoal Investments.
Diversification Opportunities for Walmart and LifeGoal Investments
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Walmart and LifeGoal is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Walmart and LifeGoal Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LifeGoal Investments 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 LifeGoal Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LifeGoal Investments has no effect on the direction of Walmart i.e., Walmart and LifeGoal Investments go up and down completely randomly.
Pair Corralation between Walmart and LifeGoal Investments
If you would invest 7,966 in Walmart on September 12, 2024 and sell it today you would earn a total of 1,530 from holding Walmart or generate 19.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 1.56% |
| Values | Daily Returns |
Walmart vs. LifeGoal Investments
Performance |
| Timeline |
| Walmart |
| LifeGoal Investments |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Walmart and LifeGoal Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walmart and LifeGoal Investments
The main advantage of trading using opposite Walmart and LifeGoal Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walmart position performs unexpectedly, LifeGoal Investments 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 LifeGoal Investments will offset losses from the drop in LifeGoal Investments' long position.| Walmart vs. Costco Wholesale Corp | Walmart vs. Dollar Tree | Walmart vs. BJs Wholesale Club | Walmart vs. Target |
| LifeGoal Investments vs. Walmart | LifeGoal Investments vs. Dupont De Nemours | LifeGoal Investments vs. Bank of America | LifeGoal Investments vs. The Boeing |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Commodity Directory Find actively traded commodities issued by global exchanges |