Correlation Between Walmart and SCCB
Can any of the company-specific risk be diversified away by investing in both Walmart and SCCB 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 SCCB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walmart and SCCB, you can compare the effects of market volatilities on Walmart and SCCB 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 SCCB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walmart and SCCB.
Diversification Opportunities for Walmart and SCCB
Very poor diversification
The 3 months correlation between Walmart and SCCB is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Walmart and SCCB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SCCB 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 SCCB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SCCB has no effect on the direction of Walmart i.e., Walmart and SCCB go up and down completely randomly.
Pair Corralation between Walmart and SCCB
If you would invest 8,075 in Walmart on August 31, 2024 and sell it today you would earn a total of 1,113 from holding Walmart or generate 13.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 2.27% |
| Values | Daily Returns |
Walmart vs. SCCB
Performance |
| Timeline |
| Walmart |
| SCCB |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Walmart and SCCB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walmart and SCCB
The main advantage of trading using opposite Walmart and SCCB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walmart position performs unexpectedly, SCCB 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 SCCB will offset losses from the drop in SCCB's long position.| Walmart vs. Dollar General | Walmart vs. Aquagold International | Walmart vs. Thrivent High Yield | Walmart vs. Morningstar Unconstrained Allocation |
| SCCB vs. Sachem Capital Corp | SCCB vs. Sachem Capital Corp | SCCB vs. B Riley Financial | SCCB vs. Eagle Point Credit |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |