Correlation Between Walmart and SIG Combibloc
Can any of the company-specific risk be diversified away by investing in both Walmart and SIG Combibloc 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 SIG Combibloc into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walmart and SIG Combibloc Group, you can compare the effects of market volatilities on Walmart and SIG Combibloc 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 SIG Combibloc. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walmart and SIG Combibloc.
Diversification Opportunities for Walmart and SIG Combibloc
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Walmart and SIG is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Walmart and SIG Combibloc Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SIG Combibloc Group 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 SIG Combibloc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SIG Combibloc Group has no effect on the direction of Walmart i.e., Walmart and SIG Combibloc go up and down completely randomly.
Pair Corralation between Walmart and SIG Combibloc
Considering the 90-day investment horizon Walmart is expected to generate 0.47 times more return on investment than SIG Combibloc. However, Walmart is 2.13 times less risky than SIG Combibloc. It trades about 0.27 of its potential returns per unit of risk. SIG Combibloc Group is currently generating about -0.03 per unit of risk. If you would invest 7,717 in Walmart on September 3, 2024 and sell it today you would earn a total of 1,533 from holding Walmart or generate 19.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Walmart vs. SIG Combibloc Group
Performance |
| Timeline |
| Walmart |
| SIG Combibloc Group |
Walmart and SIG Combibloc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walmart and SIG Combibloc
The main advantage of trading using opposite Walmart and SIG Combibloc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walmart position performs unexpectedly, SIG Combibloc 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 SIG Combibloc will offset losses from the drop in SIG Combibloc's long position.| Walmart vs. Partner Communications | Walmart vs. Merck Company | Walmart vs. Western Midstream Partners | Walmart vs. Edgewise Therapeutics |
| SIG Combibloc vs. Covestro AG | SIG Combibloc vs. Acciona SA | SIG Combibloc vs. Topaz Energy Corp | SIG Combibloc vs. Evonik Industries AG |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |